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1.     ______________ elect the members of the

Board of Directors ("Board") of a for-profit corporation. The Board appoints ___________ and they in turn hire the _____________________. The correct names in blanks in order are­­­­­­­­­­­­­­­­­­­­­­­­­­_____________.

a.     Shareholders........ inside directors....... corporate officers.

b.     Senior corporate officers......managers....employees.

c.      Shareholders.... corporate officers...... employees.

d.     Corporate officers.... shareholders....... employees. 

2John is fired on May 1,2014 from his job at ABC. He must file any EEOC charge alleging discrimination against ABC  not later than approximately_____.

a. May 1, 2016

b. November 1, 2014

c. August 1,2014

d. June 1,2014.

  1. The Ellerth case defines the  availability of the _______________________.

a. "training defense" to employers

b. EEOC charge-filing process to employees

c. McDonnel Douglas burden-shifting strategies to plaintiff in a lawsuit  

d. rules of vesting to  employyes who participant in company retirement plans

  1. There are  4 employees in a job classification at ABC Company. They are represented by a union. Their union contract has a standard seniority clause language. Their names and hire dates for computing seniority under the contract are: Bob (June 1, 2009) Nancy (July 15, 2009)  Sam (October 15, 2009) and Larry (January 1, 2010.)  ABC must lay off two of the employees in that group of four.  Under the contract seniority requirements, the laid off persons will be_________. 

a.  Sam and Larry

            b.  Bob and Larry

            c.  Nancy and Bob

            d. Nancy and Sam 

  1.  ABC Company ("ABC") operates a fleet of delivery trucks. One  of its  full-time employee drivers Fred has a wreck with Jill while Fred is making a delivery run. Jill will likely sue _____ for her injuries.

a. Fred only

b.  Fred and ABC itself under a theory of prima facie negligence 

c.  Fred and ABC itself  under a theory of vicarious liability 

d.  Fred  and ABC itself under a theory of disparate impact since  Jill's injuries were much greater than Fred's injuries

  1.  On June 1, John gives to Bill a written general power of attorney to handle all his business affairs. On June 20 Bill sells John's farm  Whiteacre to  Susan.  On June 24 John dies. On June 25th   Bill  sells John's  farm Blackacre to Susan.  On July 1,  Susan  owns ________. 

a.     Blackacre only 

b.     Whiteacre only 

c.     Both Whiteacre and Blackacre

d.     Nothing i.e. neither farm 

  1. The Age Discrimination in Employment Act protects employees from discrimination beginning at age ________.

a.     40

b.     45 

c.     50 

d.     55

  1.  175  of 200 hourly employees in a factory sign union authorization cards which the Teamsters Union presents to the employer as proof that the factory employees want  to be represented for collective bargaining by the Teamsters. The employer will likely ________________.

a. recognize the Teamsters as their employee  representative 

b. recognize any union other than the Teamsters just to make a point against them.

c. refuse recognition of the Teamsters and demand they petition the NLRB for a secret ballot represestation election.

d. commence a boycott of goods  made by Teamsters at  other employer's factories. 

  1.   John claims he was discriminated against by ABC Company because of his race. In order to win his case in federal court, he must___________________________.

               a. prove "intent to discriminate" by ABC  

               b. establish his case by a "preponderance of the evidence" 

               c.  establish his case "beyond a reasonable doubt" 

               d. file his lawsuit within 180 days of the date he was discriminated against 

  1.   John is the manager at the McDonalds in town and is Mary's boss-she is an employee there. She overhears him asking out four  other women she works with there  a for a date with him. Mary  files a lawsuit  against McDonald's for discrimination. Her lawsuit is likely based on a theory of__________.

      a. quid pro quo sexual harassment 

       b.  a " hostile work environment." 

      c. disparate impact

      d. prima facie  discrimination  


  1.  An example of a bona fide occupational qualification (BFOQ) allowing a valid defense to an otherwise discriminatory employment action would be: 

      a. A women-owned company hires only female accountants at its headquarters. 

      b. An employer promotes only whites who pass a written test for financial aptitude.

       c. A mens' clothing designer hires only male models for  modeling "runway" events

      d. A movie producer hires only white actors  for  scenes set in 1923 Germany. 

  1.   Susan is a 23-year old white female and works at a restaurant.  Her  male boss Bob (African-American and 41 years  in age) corners her one day at work behind a closed door  and tells her he  will give Susan any schedule of hours Susan wants for child care if Susan will go out on date with him. Susan was uncomfortable and quits her job, and then files a charge alleging discrimination.  She will likely claim this was a case of ________________.

      a. quid pro quo discrimination. 

      b. reverse discrimination. 

      c. age discrimination since Bob is over 40.

      d. disparate impact discrimination  

  1.   A court will focus on ____ to determine if a  person ("John") who works on-site as an accountant  at a company   and is classified as an indepemdent contractor is actually an  employee or independent contactor  at law. 

      a. the compensation level of John

      b.  whether John is paid overtime or not

      c. the degree of control over John's job performance/duties by the company  

      d.  what John's security badge says i.e. "Independent Contractor" or "Employee."

  1.  Title VII of the 1964 Civil Rights Act prohibits discrimination in employment on the basis of: 

           a. race, religion, color, sex,   and national origin.

           b.  handicap, sex, gender and marital status 

           c. age, sex, national origin, and race.

           d. sexual preference, color, national origin and caste.  

  1.  An employer may defend against a claim of disparate impact discrimination) by asserting that the criteria that has a discriminatory effect is a _______. 

a. bona fide occupational qualification.  

b. pretext.

c. affirmative action.

d. business necessity.

  1. Employers covered by the Americans with Disabilities Act (ADA) who do not accommodate the needs of persons with disabilities can demonstrate compliance with the ADA by showing that the accommodation would cause:   

a. an expense of over $50,000 and such is "excessively expensive" as defined in ADA.

b.  a 'business necessity" as defined in both the ADA and Title VII of the 1964  

c. an undue hardship to the employer.

d. an undue hardship to the disabled employee 

17.  Which benefits/financial benefit/protections  MUST an  employer make available to all its    employees/officers?  

a. disability plan and paid vacation days

b. life insurance plan coverage and  payment for overtime i.e. hours over 40 worked in a week

c. unemployment plan contributions and matching employer Social Security contributions

d.  severance pay and rights to leave and return to prior job under FEMLA  

18.  Since it is a "Right to Work" state, Texas prohibits  ______________________________,

 a. employees from selecting a labor organization as their representative for bargaining

 b. the payment of overtime wages to probationary employees 

 c. a requirement by an employer that current employees join a labor organization or lose their    d.  employment at wages below the federal minimum wage as all  employees full-time or part-time have a "right" to be employed at as a age minumum  

19.  John and Sally work at ABC Company, a restaurant business. John is Sally's boss. He asks her three times to go on date with him and she says 'no" each time. After the third time, she quits her job and files a charge of sex  discrimination with the appropriate federal agency.  ABC Company says there is no discrimination under law that has occurred since she quit voluntarily. This is wrong under concept of:

                    a. presumed agency

                    b. constructive discharge

                    c.  estoppel

                    d. BFOQ

20.  ABC Company employs John.  He works the following days and hours one week: Monday (9 hours), Tuesdays (8) ,  Wednesday  (10), Thursday (8) and Friday (9) He is paid a $10 per hour as his regular wage.  What wages is ABC by law required to pay him now  for this week?

                    a. $460 

                    b. $475 

                    c. $ 440

                    d.  $ 660   

     21.  John is an independent contractor who acts as a financial advisor for ABC Company. In 2014 he grosses $100,000 in total fees from ABC for his work.  Based on that amount, how much will ABC company  contribute to John's Social Security and Medicare accounts in 2014? 

      a. $15,300

      b. $ 7,650

c  $2,900

d. $ 0

       22.   A franchisor may be a general partnership. A franchisee must always  be a corporation.  These two statements are (in order) ______________.

                    a. true and true 

                    b. false and false 

                    c. false and true

                    d. true and false  

        23. On June 1,2015 Jill places $100,000 into Wells Fargo National Bank and is given a Certificate of deposit saying  she must leave the funds on deposit  until June 1,2016 whee they  will earn 3.0% intererest. On December 1,2015 she must withdraw all of her available  funds to pay for an operation. She can withdraw ________.  

a. $101,500

b. $103,000

c. $100,000

d. Zero since  it is not yet June 1,2016.  

     24.  Texas law about for-profit corporations organized in  this state require:  

  1. at least one director and at least one  share  of stock 
  2. at least one director on the Board of Directors and 10 shares of stock 
  3. at lease three officers of any corporation
  4. a operating agreement signed by all shareholders  

25. Anna enters into a promissory to borrow $10,000 from John and pay him back with  ten consecutive $1,000 payments without interest. Ann delivers to John a check drawn on her Chase Bank account for the correct  amount on the first payment date. John takes it  to his bank and deposits it. Anna is  properly called   both a _____ and a ______ under these two types of negotiable instruments. 

            a. holder.....maker

            b. maker...drawee

            c. drawer....maker

            d. maker....drawer

26. A contractual obligation  of buyer to make a payment to  seller for the price for goods purchased can be terminated entirely by operation of law in the event of ________________.    

            a. a discharge in bankruptcy filed by seller  

            b. a discharge in bankruptcy filed by buyer 

            c. exemption of the contract-covered asset in question under bankruptcy law  

             d. a prima facie case is established for contractual quid pro quo

27.  See question 4. If all these employees are laid offf ( i.e. all four of them) and all are black-American, is this discrimination on  basis of race?  

            a. yes, this is disparate treatment discrimination.

            b. yes,this is disparate impact discrimination 

c. no,Title 7 does not protect union-represented employees from adverse employment actions 

d. no, if seniority clause is applied in compliance with  terms of contract


28.  The term " debtor  in possession" is conected with the filing of a ___________________ in bankruptcy.

            a.  Chapter 11 petition.

            b. Chapter 13 petition.

            c.  a Chapter 7 petition 

            d.  default. 

29.A limited partnership must have at least ____ limited partner(s) and _______________ general partner(s.) 

            a.  one....two



            d.  two...two

30.  In which form of busines organization is the owner personally liable for debts of the organization?

            a. limited liability company

            b. corporation

            c. partnership

d. sole proprietorship

31.  A limited liability company is formed by __________ and each signs   ______________ that determine its method of management. The blanks are in order:  

  1. Members....bylaws
  2. Shareholders.......the operating agreement  
  3. Members...the operating agreement
  4. Two or more incorporators....bylaws

     32. Texas employers  can terminate an employee at any time  for any reason.  This is called ____. 

                   a. the doctrine of respondeat superior

b. intinction doctrine 

c.  employment-at-will doctrine

d. master-servant rule

33.   Four shareholders  all in Texas own  100%  of the shares in a company. This company may be referred to as _____________________. 

a.     An S corporation.

b.     A limited liability company.

c.     A close (closely-held)  corporation

d.     A foreign corporation 

34.   The principal has a duty to their agent to pay  for damages or insure the agent against loses s suffered while acting as  an authorized agent. This is called the principal's: 

a.     duty to cooperate.  

b.     duty to compensate. 

c.     duty to indemnify.

d.     duty to reimburse 

35.  Each individual member of the Board of Directors  for  a  corporation are subject to a ______________________ owed  to the corporation.

a.     Duty of indemnification 

b.     Duty of "good faith incorporation"  

c.     Fiduciary duty of loyalty 

d.     Agency relationship.

36.   The public policy that is behind the bankruptcy laws is to give the debtor‑_____________.

  1. a complete discharge of all their debts
  2. a perfection of all security interests held by their creditors 
  3. a  fresh start  
  4. a floating lien.

     37.  ERISA vesting requirements determine the employee's right to ___________________.  

a.     the employee's own contributions to their  retirement plan

b.     the employer's contributions to the the employee's retirement plan 

c.     have a retirement plan available to them at any corporate  employer  with over 20 full-time employees 

            d.  A and C   

38.  John, George and Fred are general partners in a limited partnership that owns a restaurant. Bill is their limited partner who contributed $50,000.  Susan is a customer and slips on a wet spot on the floor injuring herself. She sues the restaurant and wins  a judgment for $500,000.  The best statement about each of the partner's  liability is: 

a. All 4 partners  are each at risk to pay  $125,000 in personal assets to Susan.  

b. No partner is liable or at risk since Susan was not authorized to slip on the floor of the restaurant.

c.  John, George and Fred are each jointly and severally liable to pay up to $166,667.

d. Bill is liable only up to the value of his $50,000. 

39. ABC Company is incorporated in Idaho  and  operates  from a small Dallas office. It must designate a permanent  _______  in Texas.   

a. corporate officer 

b. member of its Board of Directors

c. registered agent

d. shareholder  

40. A small business corporation that meets certain requirements as set out by the Internal Revenue Service will qualify for special income tax treatment which allows the share owners to be taxed as partners  in a partnership. This entity is called a(n) ___________________ and avoids __________________.  

a. limited liability company.......taxation  

b. S corporation .......indemnification

c. federal corporation .......winding down of the entity.

d.  S corporation ........double taxation  

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