Understanding Partnerships and Corporations: Rights, Duties, and Labor Laws, Quizzes of Business and Labour Law

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TERM 1 Sole Proprietorship DEFINITION 1 Business owned by one person- not corporations2/3 of all american businesses99% of american sole proprietorships have revenue less than 1milthey are the simplest form of organizationthey have less government involvementprofessionals may need licenses attorneys doctors barbers plumbers mechanics tattoo parlors/acupuncturists TERM 2 Advantages of Sole Proprietorship DEFINITION 2 easier to start than any other business if you make a profit, you don't have to share it TERM 3 Disadvantages of sole proprietorship DEFINITION 3 if you lose money, you don't share the losses TERM 4 General Partnership DEFINITION 4 2 or more people voluntarily associating as owners to pursue a common interest for the purpose of making money Profits and losses shared equally partners have one vote regardless of interest Ordinary Business matters: majority rules Major matters: Unanimous consent is required one partners knowledge is imputed to all partners partners acts bind the partnership it is the default business organization that has two owners partnerships don't pay income tax on profits, it comes from individual share holders TERM 5 Joint and several liability DEFINITION 5 each partner is liable for 100% creditor can go after either one of the partners for 100% of the money owed TERM 6 3 ways to form a general partnership DEFINITION 6 1. written agreement2. oral agreement-difficult to prove terms3. just to act like one TERM 7 RUPA DEFINITION 7 Revised Uniform Partnership Act* rights of general partnership is controlled by state lawMichigan uses the UPA TERM 8 Partners Rights and Duties DEFINITION 8 expend time, skill and energy act in good faith and for partners benefit access to business books and records may assign their interest in the firm *can sell their interest*if sell to outsider, voluntary is undone so the outsider is not a partner but a co-owner*partners get right of first refusal- if partner wants to leave, he is required to ask other partners if they want it before he sells to others partners have no unemployment benefits personally liable for business debts new partner personally responsible only for new debts TERM 9 Fiduciary duty DEFINITION 9 putting the interest of the partnership and each of the other partners in front of the interest of yourself TERM 10 Limited Liability Partnership (LLP) DEFINITION 10 No personal liability for partnership obligationsUnlimited personal liability for wrongful conduct If partner commits malpractice or tort, that person is liable for the debt but not the other partners taxation options can choose how to be taxed TERM 21 professional corporation DEFINITION 21 file with the state indicate status in name of business (PC) shareholders must be of same profession no personal liability for partnership debts, other partners malpractice S corporation is available TERM 22 Limited Liability Company (LLC) DEFINITION 22 owners risk of loss is limited to investment taxation options unlimited number of owners foreign ownership allowed formation requirements vary by state owners are called members TERM 23 The agency-principle relationship DEFINITION 23 -an agent is a representative-represents person or company- a principal is the person or company being represented- a third party is the entity with whom the agent is interacting TERM 24 the role of the agent DEFINITION 24 - agent negotiates business transactions- agent forms contracts (legally binding principal) between principal and third party-principal must perform terms promised by agent- agent has no legal requirement to perform- agents torts cause liability for principal TERM 25 Employee-at-will DEFINITION 25 -most employees can be fired at any time for any reason or even for no reason-employee can also quit at anytime TERM 26 Exceptions to Employee-at-will DEFINITION 26 -contracts some contracts don't matter as much depending on the industry for example a football coach -case law comes from appeals wrongful termination e.g. employment manual: if employer gave a list and it didn't mention the employee would be an employee at will, employee can't be fired-implied contract also the longer you work for a company, the more secure your job should be- implied security public policy can't be fired for whistle blowing, serving military reserve duty, jury duty, workers comp, filing a sexual harassment form, near retirement statues can't be fired for discrimination union employment union has a master contract with employer TERM 27 privacy rights of employees DEFINITION 27 - employers should add a privacy statement to employee handbook- privacy is not violated if there is no reasonable expectation of privacy i.e. personal telephone calls and emails business calls can be monitored - training, protection from customer abuse, and enforcement of personal phone call ban TERM 28 Privacy Issues for employers DEFINITION 28 - install hidden cameras in public areas when employee is in public area, they have no reasonable expectation of privacy - do not install hidden cameras where privacy is reasonably expected- install visible surveillance cameras in private areas*exception is if there is good reason to have a hidden camera e.g. purse theft or changing areas but must give notice of hidden camera TERM 29 controlled substance testing DEFINITION 29 announced testing is acceptable during: pre-employment assessment investigation of drug use periodic physical exams random testing is acceptable when others are in danger i.e. when public is involved e.g. California busses getting in more accidents TERM 30 employee polygraph protection act DEFINITION 30 private employer may not: require employees to take an exam require applicants to take an exam inquire about exam results use negative exam results against employee or applicant discriminate against an employee or applicant who refuses to take a test government employees not bound by this law TERM 31 employers exempt from polygraph laws DEFINITION 31 government security service firms controlled substances firms-medical marijuana victims of theft or spying companies providing consulting services to federal intelligence agencies TERM 32 Family and medical leave (FMLA) DEFINITION 32 reasons for leave: new born baby adoption accepting a foster child caring for an ill family member employees personal serious illness-cannot perform essential functions of the job *for up to 12 weeks in 1 year*either parent is eligible*not required to pay you*only can take off for your own parents not in-laws TERM 33 FMLA requirements for employee DEFINITION 33 must work 12 months for employer give 30-day notice of leave - reason for leave - length of time needed if reason for leave is not foreseeable, give notice as soon as practicable TERM 34 Union Elections DEFINITION 34 objective: to certify a new union to decertify an incumbent union-remove goal: to assure employees freedom of choice timing scheduled only after substantial showing of interest- 30% signatures * national union relations act (wagner act)* national labor relations board (NLRB)- college athletes are employees of where they play and may join a union*Elections must be conducted under laboratory conditions TERM 35 National Labor Law DEFINITION 35 Employees can form unions and union representatives can bargain collectively