BUS Structure And Other Law

Question 1

What is joint venture?

Answer 1

Joint venture is formed for a single business undertaking such as building and designing freight containers to be sold specifically to one company.

Question 2

3 exception that might hold shareholders of a Crop personally liable:

Answer 2

Commingle personal funds, inadequate capitalization, and committing fraud on existing creditor

Question 3

ULTRAMARES RULE?

Answer 3

It normally allows recovery by 3rd party ONLY if there was privity of contract btw the accountant and 3rd party.

Question 4

What would support a finding of constructive fault?

Answer 4

Gross negligence/recklessness in applying GASS

Question 5

Main provisions of FCPA (Foreign corruption practice act of 1977) ?

Answer 5

1. Address accounting transparency requirements under Securities exchange act of 1934 (not just about foreign issue) – effect only SEC-registered CO.
2. Bribery of foreign officials. – effect all U.S. Company

Question 6

ERISA’s vesting policy, $ contributed to a pension plan must fully vest within?

Answer 6

Employee contributed—fully vested IMMEDIATELY

Employer contributed—fully vested within 5 yrs