Which of the following is correct about Lakes’ policy on Facebook access?
a. The monitoring may be overly broad.
b. The monitoring may be prohibited in certain states.
c.The monitoring policy may not fit within current legal standards.
d.The monitoring is not permitted.
e. a, b, and c
A Subchapter S or S Corporation is:
a. a special class of close corporation under the MBCA.
b. an IRS tax treatment option for corporations owned by a limited number of
shareholders.
c.a not-for-profit corporation.
d.none of the above
Affirmative action programs:
a. are permitted only when the employer has a past history of discrimination.
b. must have quotas.
c.can be mandated by the EEOC.
d.none of the above
To which of the following will the 10b prohibitions on insider trading apply?
a. An officer exercising stock options on the day before the company announces its
earnings for the quarter.
b. An officer exercising stock options on the day before the company reveals an SEC
investigation.
c.An officer exercising stock options on the day before the company announces an
earnings reversal.
d.An officer’s son buying stock on the day before the company announces an earnings
increase.
e. All of the above are violations of 10b.
To be constitutional, federal statutes regulating commerce within a state must involve
some economic activity.
a. True
b. False
Assume there is a credit contract for the purchase of the following items. Which one is
not covered by TILA
disclosures?
a. a microwave for use in a CPA office
b. a computer for a home
c.a car by an employee that the employee will use to travel to sales calls
d.All of the above are covered.
Consumer information obtained over the Internet cannot be used without their
permission.
a. True
b. False
The laws on copyright ownership and infringement were passed by the U.S. Congress.
Where would you find those laws?
a. in the Uniform Commercial Code
b. copyright is governed by the common law
c.in the Federal Register
d.in the United States Code
GATT requires patent protection for 50 years.
a. True
b. False
Hearings conducted by agencies for enforcement purposes need not provide due process
for the parties.
a. True
b. False
A prima facie case is one that can survive a directed verdict.
a. True
b. False
Ralph Walters wanted to begin an exercise program and decided to enroll in a local
aerobics class. He was told that he would need proper aerobic work-out shoes. Ralph
went to an athletic shoe store and explained his needs to the sales clerk and also added
that since he had never done aerobics, he was unsure what type of shoe he would
need.The sales clerk recommended a shoe that Ralph purchased. When Ralph arrived at
aerobics class, his instructor said his shoes were not appropriate for aerobics and that
Ralph might injure himself if he used them for the workout. When Ralph returned to the
store with the shoes, the store refused to exchange them, citing the three-day limitation
on returns. The shoe store:
a. is within its rights to refuse to take the shoes back.
b. has breached the implied warranty of fitness for a particular purpose and is required
to refund Ralph’s money or exchange the shoes.
c.has not breached any warranty since Ralph had no contract with any promises written
in it.
d.none of the above
Defamation cannot exist in cyberspace because there is no evidence that someone heard
or understood the statements.
a. True
b. False
Together, Christie’s and Sotheby’s controlled about 75% of the international auction
market.
a. True
b. False
All employers are covered under Title VII.
a. True
b. False
The FTC Improvements Act of 1980 curbed FTC regulation of children’s advertising.
a. True
b. False
The First Amendment prohibits state regulation of false advertising.
a. True
b. False
The Computer Fraud and Abuse Act (CFA) applies only to federal employees.
a. True
b. False
How can comments be submitted?
a. By letter
b. Only by testimony at a public hearing
c. Only by Congressional testimony
d. Only through depositions
Hank Greenberg was the head of:
a. the SEC.
b. Citigroup.
c.AIG.
d.BP.
The 1970 amendments to the Clean Air Act were technology-forcing provisions.
a. True
b. False
Attorneys who represent publicly traded companies need not report any financial fraud
to boards because of attorney-client privilege.
a. True
b. False
The principle of staredecisisrequires that all similar cases be decided the same way.
a. True
b. False
Addison Winchell is the CEO of a printing firm located in Lexington, Kentucky. The
state office of environment quality has proposed a rule mandating the use of soy inks
and recycled paper by all printers in the state. Winchell says the expense will put him
out of business. What can Winchell do?
a. Provide comments to the proposed rule.
b. Go directly to court with a constitutional challenge.
c. Present evidence if a trade group supports him.
d. All of the above.
The purpose of causation is to tie the breach of duty to the resulting injury.
a. True
b. False
Which of the following is the top OSHA violation type from the 2008 OSHA
inspections?
a. Machine guards
b. Scaffolding issues
c.Fall protection
d.Electrical systems
“When in Rome, do as the Romans do,” is an example of moral relativism.
a. True
b. False
What does the Securities Litigation Reform Act’s safe harbor provision do?
a. eliminates director and officer liability under Section 11
b. eliminates auditors’ liability under Section 11
c.provides liability protection for income predictions in the registration statement
d.all of the above
Embezzlement is:
a. theft by an employee.
b. a crime that does not require proof of intent.
c. a crime that can occur when property is borrowe
d.none of the above
John Forsyth is the head of the Securities Exchange Commission. There are new rules
pending before the SEC that would require lawyers to blow the whistle on their clients.
The American Bar Association, which is opposed to the legislation, has just offered Mr.
Forsyth’s son a full scholarship to the law school of his choice.
a. The in-kind contribution to his son is a violation of the law.
b. A scholarship to Mr. Forsyth would be illegal, but not to his son.
c. The ABA has not violated any law if there is no connection between the proposed
rule and the scholarship.
d. none of the above
Which of the following is not grounds for challenging an administrative regulation?
a. arbitrary and capricious
b. lack of substantial evidence
c. ultra vires
d. lack of a congressional hearing
Which of the following violates the Equal Pay Act?
a. a seniority system
b. merit pay systems
c.pay based on longevity of employment
d.none of the above
One state can impose a tax on a corporation’s property if the corporation does any
business in the state.
a. True
b. False