Self Check Chapter 41 Quiz (WK2)

Self Check Chapter 41 Quiz (WK2) - Self Check Chapter 41...

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Self Check Chapter 41 Quiz (WK2) 1 A corporation with few shareholders is known as a close corporation. A) True B) False 2 Fayetteville Bath, Inc. is incorporated and doing business in Arkansas, but ships its  goods to all fifty states and internationally. Use these facts for the following four  questions.  As far as the state of Ohio is concerned, Fayetteville Bath, Inc. is a foreign corporation. A) True B) False 3 The state of Ohio can impose its workers' compensation laws on Fayetteville Bath, Inc.  despite the fact that none of Fayetteville's employees work in Ohio. A) True B) False 4 The state of Ohio has jurisdiction over a lawsuit filed against Fayetteville Bath, Inc. for  injuries allegedly resulting from the use of one of Fayetteville's products by an Ohio  resident in Ohio. A) True B) False 5 The state of Ohio can impose greater requirements on Fayetteville Bath, Inc. than on  domestic Ohio corporations as part of its right to protect local businesses and promote  Ohio economically. A) True B) False 6 Jason owned a trucking operation with a total of 20 employees. State law required that  employers of five or more workers provide health insurance. To avoid that requirement,  Jason set up five corporations (Jason1, Inc., Jason2, Inc., Jason3, Inc., Jason4, Inc.  and Jason5, Inc.) each of which employed four workers. The state sued Jason for failing  to comply with the state law requiring insurance coverage. Use these facts for the  following two questions. 
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The state's best argument that Jason should be required to pay health insurance is A) The corporate veil should be pierced since under the alter ego doctrine: it is an  improper purpose to allow the creation of separate corporations to circumvent  a statute designed to protect employees' health. B) The corporate veil should be pierced since, under the alter ego doctrine it is an  improper purpose to incorporate for the purpose of avoiding liability. C) The corporate veil should be pierced to require the subordination of employee  claims. D) The corporate veil should be pierced since single ownership among  corporations justifies disregard of the corporate structure. 7 Jason's best argument against the state's claim is that A) Even assuming that there was a lack of separateness among the corporations,  it is not improper to create corporations for the purpose of avoiding regulatory  law. B)
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This note was uploaded on 06/08/2010 for the course MG 261DLB taught by Professor Johnhutcherson during the Spring '10 term at Park.

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Self Check Chapter 41 Quiz (WK2) - Self Check Chapter 41...

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