Posted: November 9th, 2016

Mediation might be more reasonable and appropriate than a trial in which of the following situations? a) A lawsuit challenging the constitutionality of a new state statute.

Kisha operates River Valley Soccer, an athletic equipment shop, as a sole proprietorship. Taxes on the business’s income are paid by a) No one; since it is a sole proprietorship there are no business taxes. b) Kisha as the sole owner. c) The state or federal government if Kisha holds a Small Business Administration loan acquired to start her business. d) The business entity of River Valley Soccer, not Kisha personally. 19. Assume that Virginia enacted a law prohibiting, until further notice, all grocery stores in Virginia from selling all powdered spices manufactured in, or shipped from, Maryland. This law was enacted because it was discovered that the spices recently manufactured in Maryland were infected with bacteria. Determine the constitutionality of the Virginia statute. The statute is: a) Unconstitutional; it violates grocery store owners’ substantive and procedural due process rights under the 5th and 14th Amendments because they are private businesses. b) Unconstitutional; the statute imposes an undue burden on interstate commerce. c) Constitutional; it is a valid exercise of Virginia’s police power. d) Constitutional; the statute involves the sale of goods which is valid under UCC rules, thus, the state constitution does not apply. 20. Distinguish which of the following is an advantage of limited liability companies (LLCs) over corporations. a) Only one member of a LLC must have unlimited liability as compared with corporations in which all shareholders have unlimited liability. b) LLCs can be formed without any specific steps being taken by the owners as compared with corporations that must file Articles of Incorporation with the State. c) In most cases, a LLC can choose whether to be taxed as a partnership or corporation, as compared with corporations that are subject to double corporate taxation. d) LLCs can choose whether to sell shares publically to investors, as compared to private corporations that must sell shares publically to investors. 21. Pete, who collects antique cars, hired Ann as his agent to find and purchase a 1965 Ford Mustang on his behalf. Ann found a Mustang just like Pete wanted, but Ann fell in love with the car and purchased it for herself. Which of the following illustrates Ann’s liability, if any, in her duty as agent to Pete in this situation? a) Ann has not violated the duty of loyalty to Pete; she can find another Mustang for him. b) Ann has not engaged in self-dealing because she did not purchase the Mustang with Pete’s funds. c) Ann usurped an opportunity for Pete, but has not violated the duty of loyalty to Pete by competing with Pete’s interests. d) Ann violated the duty of loyalty to Pete by competing with Pete’s interests, and has usurped an opportunity for Pete. 22. Ed hired Frankie, who is 13 years old, to buy a computer on Ed’s behalf. Which of the following identifies the legal relationship between Ed and Frankie? a) This is a valid agency relationship even though Frankie is a minor, and Ed would be bound by authorized contracts Frankie enters into on Ed’s behalf. b) This is a valid agency relationship even though Frankie is a minor, but Ed would have the option of disaffirming any contracts Frankie enters into on Ed’s behalf. c) This is a valid agency relationship even though Frankie is a minor, but Frankie would not be entitled to any payment under the terms of the agency because he is a minor. d) This is an invalid agency relationship because Frankie is a minor. 23. Mediation might be more reasonable and appropriate than a trial in which of the following situations? a) A lawsuit challenging the constitutionality of a new state statute. b) A dispute between neighbors over a property boundary. c) An alleged theft of patio furniture from the patio of a house. d) None of the above are appropriate for mediation.