CBA CBA Business Law & Regulatory Compliance 2

Question 1

A non-compete agreement is most likely to be enforceable when it is:

Accepted Answer

Reasonable in scope, duration, and geographic area

Answer

Courts uphold non-compete agreements that protect a legitimate business interest and are reasonable in time, geography, and scope of restricted activities.

Question 2

Under the Fair Labor Standards Act (FLSA), which category of employees is exempt from overtime pay requirements?

Accepted Answer

Employees earning over $684/week who perform executive, administrative, or professional duties

Answer

The FLSA white-collar exemption applies to employees paid at least $684/week on a salary basis who perform bona fide executive, administrative, or professional duties.

Question 3

A business advisor notices a client's contract contains an unconscionable clause heavily favoring the other party. In contract law, unconscionability typically refers to a term that is:

Accepted Answer

Shockingly unfair or oppressive, often involving unequal bargaining power

Answer

Unconscionability addresses contracts or clauses that are so one-sided or oppressive — particularly where there was unequal bargaining power — that enforcement would be unjust.

Question 4

Which of the following best describes a 'piercing the corporate veil' scenario?

Accepted Answer

Courts hold shareholders personally liable by disregarding the corporate legal separation

Answer

Courts pierce the corporate veil when shareholders use the corporate form to perpetrate fraud or fail to maintain proper separation, making them personally liable for corporate debts.

Question 5

The Equal Employment Opportunity Commission (EEOC) enforces laws prohibiting employment discrimination based on all of the following EXCEPT:

Accepted Answer

Marital status

Answer

While federal EEOC laws cover race, color, religion, sex, national origin, age, disability, and genetic information, marital status is not a federally protected class under EEOC jurisdiction.

(CBA) Certified Business Advisor Practice Test

(CBA) Certified Business Advisor Practice Test

CBA CBA Business Law & Regulatory Compliance 2