1) Patty owned Patty’s Cakes in Jacksonville, Florida. She sold her business to Fruity’s, Inc. a national pastry company. There was a non-compete agreement in the contract for the sale of her business. In the non-compete, Patty agreed not to work in any capacity in the food industry for 10 years on the entire east coast. A court would likely determine that the non-compete agreement a) violates federal law b) is unenforceable c) is enforceable d) both A and B
2) A liability that may extend from an employee to the employer if the employee is acting within the scope of his or her employment at the time the liability arose is called: a) vicarious liability b) employee liability c) employer liability d) adverse liability
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Sam is paid a salary and the proper federal and state tax withholdings are made. Arnie does not receive benefits like retirement and health insurance and his is paid by the project with no federal and state withholdings. Arnie signed a contract that clearly stated he was an independent contractor and not an employee. a) BRC has properly classified Arnie as an independent contractor b) BRC has improperly classified Arnie as an independent contractor c) BRC has improperly classified Arnie as an independent contractor, however, its contract with Arnie is binding and BRC will have no liability under federal or state law for the misclassification. d) BRC has improperly classified Arnie as a independent contractor, however, its contract with Arnie is binding and BRC will have no liability under federal and state law for the misclassification, but Arnie will have liability under federal and state law.
8) Pilar is hired by Axel, Inc. as an independent contractor. To avoid a determination by the IRS that Pilar has been misclassified as an independent contractor, Axel should: a) provide training to Pilar b) pay her by the hour c) pay FICA d) none of the above
9) Clarence works as an independent contractor for the law firm of Kafka, Rivera and Grisham. a) Clarence will be responsible for making payments for his Social Security (FICA), estimated federal income tax payments, estimated state income tax payments and