The Oil Pollution Act creates a trust fund for oil spill cleanup.
a. True
b. False
Which of the following is correct about inpersonamjurisdiction?
a. The courts of Missouri would have jurisdiction over the case because Bassett did
business on a regular basis with a Missouri company.
b. The courts of Missouri would not have jurisdiction because Bassett had no presence
in the state.
c.The terms of the contract would control whether the courts of Missouri had
jurisdiction over Bassett.
d.No state in the United States would have jurisdiction over Bassett.
GATT is a 150-member free trade agreement.
a. True.
b. False
Fair use is use of a copyrighted item with permission.
a. True
b. False
Which of the following forms of business structure has the easiest means of transfer of
ownership interests?
a. LLCs
b. LLPs
c.Subchapter S corporations
d.C corporations
Which of the following is not an accredited investor for purposes of Regulation D?
a. any bank
b. a partner of the issuer
c.a purchaser of $150,000 or more of the securities
d.any person with income greater than $150,000
The 1934 Act proxy registration requirements:
a. apply only to management.
b. include a requirement for shareholders’ proposals.
c.are not applicable to dissenters’ solicitations.
d.none of the above
The Mirandawarnings:
a. must be given or the case is dismisse
b. are based on Fifth Amendment rights.
c. are based on Fourth Amendment rights.
d.none of the above
Most countries follow a philosophy of caveatemptor.
a. True
b. False
In which of the following forms of doing business does the death of one of the owners
cause dissolution?
a. partnership
b. S Corporation
c.C Corporation
d.closely-held corporation
e. nonprofit corporation
Which is a requirement for the creation of an agency relationship?
a. a written agreement
b. principal with capacity
c.agent with capacity
d.none of the above
Several law firms in the Detroit area have met and agreed not to charge more than $200
for a simple will so that they can more effectively compete with the increasing number
of legal clinics. The agreement for a price maximum is:
a. not an antitrust violation because the public benefits from maximum prices.
b. not an antitrust violation because it is a service and not a sale of goods.
c.price fixing and an antitrust violation.
d.none of the above
Monitors are not permitted to have daily access to a corporation.
a. True
b. False
The corporate veil can be pierced for inadequate capitalization.
a. True
b. False
A state law that covers all businesses cannot give in-state businesses an advantage over
out-of-state businesses.
a. True
b. False
Slander of title is the same tort as palming off.
a. True
b. False
Unemployment benefits:
a. are paid regardless of the reason for termination of employment.
b. are paid from FICA contributions.
c.cannot be regulated by the state.
d.none of the above
The Labor Management Relations Act applies restrictions on management economic
weapons.
a. True
b. False
Under the doctrine of sovereign immunity, a country cannot be forced to answer civil or
criminal charges in a U.S. court.
a. True.
b. False
Courts interpret all levels of statutes and regulations.
a. True
b. False
Constitutions exist at both state and federal levels.
a. True
b. False
The Clean Air Act is applicable only to businesses with 15 or more employees.
a. True
b. False
Which of the following would not be classified as libel?
a. a newspaper article with untrue statements
b. a letter with untrue statements sent to only one person
c.a true statement
d.a speech at a Veteran’s Day parade
The National Labor Relations Act:
a. is also known as the Wagner Act.
b. is also known as the Landrum-Griffin Act.
c.gives management a bill of rights.
d.none of the above
The Federal Arbitration Act (FAA) permits mandatory arbitration in consumer contracts
but has yet to be tested in litigation.
a. True
b. False
Under which of the schools is the corporation best served by serving only the
shareholders?
a. inherence school
b. enlightened self-interest school
c.invisible hand school
d.social responsibility school
Which of the following is not an exempt security under the 1933 Act?
a. municipal bonds
b. insurance policies
c.promissory notes
d.annuities
e. All of the above are exempt securities.
Investment banker, Frank Quattrone, sent an e-mail around to his employees reminding
them about their e-mails and to “clean up those files.” The email was sent when the
SEC was investigating Mr. Quattrone’s employer, Credit Suisse First Boston. The
destruction of the e-mails:
a. could constitute spoilation.
b. could constitute obstruction of justice.
c.is fine if it is routine.
d.both a and b
Ann Archer purchased shares from XYZ Corp. for $10. The par value of the shares is
$5. What is the amount of water per share in the shares?
a. $0
b. $5
c.$10
d.$1
The Electronic Communications Privacy Act applies to all forms of electronic
communication.
a. True
b. False
Under Sarbanes-Oxley, which of the following is true?
a. Companies must have a separate code of ethics for financial reporting.
b. Boards of directors are not subject to the act’s provisions.
c.The act does not cover publicly traded companies.
d.both b and c