In Label Systems Corp

question 11

Multiple Choice

In Label Systems Corp. v. Aghamohammadi , the defendants were terminated from employment alleging willful and felonious misconduct. The plaintiff filed a three-count complaint against the defendants and the defendants counterclaimed against the plaintiff by filing a third-party complaint. The jury in this case found that the plaintiffs were liable for vexatious litigation. The trial court denied several post-trial motions filed by both parties, awarded Label Systems $19,460.17 in punitive damages, and rendered judgment in accordance with the jury's verdict. The Supreme Court concluded that the trial court did not abuse its discretion by denying the plaintiffs':

• A)default judgment.
• B)punitive damages.
• C)motion to dismiss.
• D)motion for remittitur.

---

Definitions:

Employer's Quarterly Federal Tax Return

A form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks, and to pay the employer's portion of Social Security or Medicare tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' wages and payroll taxes.

Form 940

A tax form filed by employers to report annual Federal Unemployment Taxes (FUTA).

Income Summary

An account used in the closing process to collect the balance of all temporary accounts and transfer the result to permanent equity accounts.