Which of the following sections of the U.S. Constitution establishes the judicial branch
of government?
a. Article I
b. Article II
c. Article III
d. none of the above
Sarbanes-Oxley requires all covered companies to have a code of ethics for financial
officers.
a. True
b. False
The shareholders of Tennis Man, Inc.have just approved an amendment to their articles
of incorporation that requires 75 percent of all shareholders to approve a merger before
it can take place. The amendment is an example of:
a. a tender offer.
b. an illegal act preempted by the Williams Act.
c.a valid antitakeover defense.
d.none of the above
Which of the following questions would not be illegal under the ADA?
a. “Do you have the use of both arms?”
b. “Can you walk at all?”
c.”Are you able to lift 50 pounds of mail?”
d.All of the above would be acceptable.
The intrastate registration exemption requires that 100 percent of the issuer’s assets be
located in its resident state.
a. True
b. False
Son-of-Sam laws:
a. deal with political contributions by corporations.
b. provide for taxation differences on interstate vs. intrastate commerce.
c. prevent perpetrators from profiting from their crimes.
d. none of the above
The Age Discrimination Act:
a. applies to employers with 20 or more employees.
b. applies to employees who are 40 to 75 years old.
c.is enforced by the EEOC.
d.all of the above
The Internal Revenue Code is part of federal statutory law.
a. True
b. False
A certified union has the exclusive right to represent employees in contract
negotiations.
a. True
b. False
The Federal Register Act is part of the Administrative Procedures Act.
a. True
b. False
Smitty’s is a bait and tackle shop near Lake of the Ozarks, Missouri, owned by Red
Smith. Smitty’s has a website, www.smittys.com. Smitty’s Bait Shop is located in the
Adirondacks in New York, owned by Buzz Smith, who also runs a catalogue business.
When Buzz tried to get the website, www.smittys.com, for use with his catalogue sales,
he discovered Smitty’s of Missouri. He filed suit in federal district court in New York
for infringement. “Everyone will go to the site and think I don”t have catalogue
merchandise! I”ll lose business.” Red says, “I”m in Missouri. How could anyone be
confused? And, I don”t sell by catalogue or the Internet. And, I”m not going to New
York to defend a pointless lawsuit.”
a. Red is correct, New York has no jurisdiction over him.
b. Buzz is correct. Red’s Internet site subjects him to New York jurisdiction.
c.Neither is correct, the case belongs in state court.
d.none of the above
The Truth-in-Lending Act applies to all credit transactions.
a. True
b. False
Haskins is an officer of a real estate development firm. Haskins purchased a piece of
property in a rural area of Arizona with the idea of building resort homes there. The
firm has always had board resolutions for purchases of property (as is common
practice) but there was no resolution for this property purchase. The other officers in the
firm have learned of the value of the property and are concerned that the firm may not
own the property. Which of the following statements is true?
a. The firm can ratify Haskin’s actions and take over the contract.
b. The firm cannot ratify the contract unless Haskins had express authority to buy land.
c.If the firm ratifies the contract, the effect is that Haskins is released from liability on
it.
d.none of the above
Mining is the industry with the highest fatality rate.
a. True
b. False
Express authority:
a. must be in writing.
b. can limit the agent’s authority.
c.includes customary authority.
d.none of the above
Predicate offenses under RICO include:
a. gambling.
b. bribery.
c. extortion.
d.a and c only
e. all of the above
During the public comment period for a proposed rule, only affected businesses can
make comments.
a. True
b. False
What is the minimum time period for comments that the Department of Labor must
allow?
a. 180 days
b. 120 days
c. 60 days
d. 30 days
The COPPA act:
a. Applies to only retailers selling online.
b. Applies only to interstate businesses.
c.Applies to websites that collect information from children.
d.Applies to websites that have pornography posted.
Under the Federal Computer Fraud and Abuse Act, unauthorized access to government
computers is a felony.
a. True
b. False
LLCs have existed in Europe and South America prior to their existence in the U.S.
a. True
b. False
Phillip Esten operates a mail store in which he offers various services such as packaging
items for shipment, delivering items to overnight services, and a fax machine. Esten
charges $4.00 for deliveries for one-time customers and $2.00 for deliveries for his
account customers. Esten’s prices:
a. are a violation of the Robinson-Patman Act.
b. are not covered under the Robinson-Patman Act.
c.constitute price discrimination.
d.none of the above
Invasion of privacy is a tort of negligence.
a. True
b. False
Section 10(b) would apply to which of the following situations?
a. a financial printer trading stock based on takeover information in the printing he is
doing for a corporation
b. an accounting firm performing an audit in a grossly negligent fashion that results in
misleading financial statements
c.a guest at a reception trading on information she overheard at the party
d.none of the above
A right-to-sue letter is given after administrative remedies are exhausted.
a. True
b. False
The Equal Pay Act is an amendment to FLSA.
a. True
b. False
Discuss the following and whether each would be a violation of Title VII.
a. Six weeks of paid leave for women upon birth of a child.
b. A strength test for a city fire department that has excluded all female applicants.
c. Paying female MBA hires a starting salary of $81,000 while paying male MBA hires
only $75,000.
An inadequately capitalized corporation can have its corporate veil pierced.
a. True
b. False
A tying arrangement requires the seller to have market power in the tied product.
a. True
b. False
A purchase of a deep fryer at a sale of a bankrupt restaurant’s equipment by the
bankruptcy trustee is covered by
the warranty of merchantability.
a. True
b. False