Exam 42: Law for Small Businesses

National Standard Company (NSC) products are identified with a trade?mark. For several years, NSC al?lows others to use the mark without permission and without protest. This may consti?tute, on NSC's part,

Klee wants to make and sell a computer operating system under a trade?mark. To obtain the most protection under the law, Klee should choose a mark that is

Huck decides to open Italian Place as a restaurant and operate the business as a corporation. At the directors' initial meeting, the directors may

Mabel and Nahim want to start up and incorporate a new business enterprise. The first step in the incorporation process is to

Misha operates Napa Valley Runners, an athletic equipment shop, as a sole proprietorship. Taxes on the business's income are paid by

Diana and Earl incorporate their computer technical support business as Fast Aid, Inc. Diana contracts with Gina to respond to Fast Aid's cus?tomer service calls on a commission basis. What are the advantages and disadvantages to Fast Aid of classifying Gina as an independent contrac?tor rather than as an employee? Earl obtains a loan from First National Bank and signs a promissory note for repayment of the amount without indicating that he is doing so on behalf of Fast Aid. Fast Aid does not make enough profit its first year to make payments on the loan. Charging default, the bank files a suit against Earl for the unpaid amount. Earl re?sponds that he was acting on behalf of Fast Aid. Will the bank succeed against Earl? Why or why not?

To protect its trade secrets, Innovative Processes, Inc. (IPI), may require employees that have access to the secrets to agree in their employment contracts not to

Use of your name or a description of your product as a trademark pro?vides the strongest protection against infringement.

A business organization with only two owners does not need an agreement to define their ownership rights and interests.

Stef is starting a small machine shop-Thunder Road Hydraulics-and is considering whether to organize the business as a limited liability company or a lim?ited liability partnership. Both forms

The regulations of the Occupational Safety and Health Administration have no small business exemptions.

Hiring independent contractors avoids the application of laws governing employment relationships.

Darcy and Eigen own and operate a small-business enterprise that does not pay taxes on its profits, but distributes them to Darcy and Eigen who pay taxes on these amounts as their individual income. Darcy and Eigen's personal liability for the firm's debts and obligations is limited. This firm is

Ben owns Copyshop and wants to sell Copyshop franchises throughout the United States. In doing so, Ben wants to prevent competitors from imitating the distinctive Copyshop logo and thereby misleading consum?ers. How can Ben protect the logo?

A key consideration in starting up a business is whether the business form chosen will limit personal liability for business obligations.

Payroll Services Company is a small business with ten employees. The regulations of the Occupational Safety and Health Administration exempts

A corporate agent is not personally liable on a contract entered into on the corporation's behalf unless the agent expressly agrees to such liability.

A limited liability company has more legal flexibility than a corporation.

Jess and Kaley own and operate Little Tykes, a small-business enterprise. Little Tykes pays taxes on its profits, and Jess and Kaley pay taxes on the profits that are afterwards distributed to them. Little Tykes is

The law considers all new, single-owner businesses to be limited liability companies un?less the owner affirmatively adopts some other form.