Exam 42: Law for Small Businesses

Allowing others to use a trademark without protesting that use can con?sti?tute abandonment of the mark.

Rachel wants to open Star Ad Agency with the assistance of an attorney. To find an attorney, Rachel could

A corporate records book contains memos relating to sales meetings.

Pam opens Quik Xpress, a local delivery service. Unless Pam expressly adopts a certain form of business organization, the law considers Quik to be

B2B, Inc., an inventory management firm, is a corporation. Cody is one of B2B's owners-a shareholder. If Cody's dies, B2B

A buy-sell agreement establishes the criteria for the price to be paid a shareholder for his or her ownership interest.

Generally, no employment agreement should be in writing.

Howie operates Island Burger Restaurant as a corporation. A customer slips and breaks her ankle in the restaurant and is awarded damages by a court. Those damages must be paid by

Gibby operates Happy Campin', a resort on Idle Lake, as a limited liability company. This form of business organization protects from liability Gibby's

An employer's promises of job security are never binding.

Some contracts must be evidenced by a writing to be enforceable.

It costs nothing to establish a limited partnership.

Filing in a state office is not required to incorporate.

No capital can be raised through an offering of stock without registering the shares as securities with the Securities and Exchange Commission.

Global Tours, a travel agency, is a limited liability company. Global is ex?empt from legal requirements that relate to

A shareholder agreement defines relative ownership rights and interests.

The three shareholders of Omega, Inc., want to prevent each other from sell?ing the shares to third parties without first being given the opportu?nity to buy them. The shareholders can provide for this in

Loudon Machinery, Inc., wants to fire its employee Newt, who is an at-will employee. This means that Newt can be fired

Key-person insurance helps to cover business losses caused by the death of the employee who "turns the key" to open a business each working day.

Without copyright or patent protection for a product, a competitor can copy it.