Exam 43: Law for Small Business

Promises made to an employee in a contract or a handbook may prevent an employer from firing the employee without fulfilling the promise.

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

Factors to consider when choosing a business form include continuity of life.

Philo wants to start a new business enterprise. Because it is difficult, if not impossible, to keep up with the many legal rules that govern business conduct, Philo most likely needs to consult

Elan Elite Service Company's offer of shares of stock in itself to anyone who is willing to pay $600 per share is

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

One way to raise capital to expand a business is to borrow the funds.

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

Stingo operates Tropic 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 most likely be paid by

Dallas and Ellyn operate Freestyle Riders, a bicycle shop, as a partnership. Taxes on the business's income are paid by

There are no benefits to establishing a more formal business arrangement than a sole proprietorship.

National Standard Company (NSC) products are identified with a trademark. For several years, NSC allows others to use the mark without permission and without protest. This may be deemed, on NSC's part,

The duties of a limited liability company's members may not be limited by its operating agreement.

Bemis is forming Cool Air Company to make and sell a device that removes the heat from working kitchens and other hot rooms. In exchange for legal services to Bemis and his new firm at the start-up stage, an attorney is not likely to accept

Electro, Inc., makes and sells electric bikes, as well as parts and service, to customers in the United States and other countries. Can Electro prevent its employees from revealing its customer lists, pricing policies, and other confidential information, if the employees resign to work for a competitor or to enter the same business themselves How

Nero opened Oh! Fudge!, a candy store, as a corporation. When doing business on behalf of the store, to avoid personal liability, Nero should sign contracts

Demi operates Eyes Wide Open, a small-business optician enterprise. To raise capital, Demi contacts Foster, a venture capitalist. Besides capital, Foster will most likely

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 consumers. How can Ben protect the logo

Finn wants to incorporate his game store as GameZ, Inc., and files the name with the Idaho secretary of state. Filing will protect the name

The five shareholders of Orthopedic Ease, Inc., a medical equipment firm, want to prevent each other from selling the shares to third parties without first being given the opportunity to buy them. This can be provided for in