SuperMart Inc. operates a franchise operation. Mr. Jones purchased a right to open a
SuperMart but the agreement has a vertical restraint, Mr. Jones is not allowed to market
or seek customers beyond 25 miles of his franchise store. This agreement is per se
illegal.
There are no criminal penalties for violating the Clayton Act.
The period of time between the filing and the effective date of a share offering is called
the waiting period.
A domestic corporation attempting to monopolize outside the United States with foreign
nations is guilty of a crime under the Sherman Act.
Corporations must give notice of the annual meeting and special meetings to
shareholders.
The term for outsiders who attempt to gain control of a corporation is called raiders.
A partnership will be bound by the legal admissions or representations of its partners.
An agent who has total control over a piece of property has implied authority to
contract for repairs.
State securities laws are known as “blue sky laws”.
The Federal Trade Commission is a state agency.
Who is liable for the acts of the managers of the LLC?
A.Only the LLC itself
B.The organizers of the LLC
C.The members of the LLC
D.The incorporators of the LLC
According to the Statutory Close Corporation Supplement to the MBCA who does a
shareholder have a fiduciary responsibility to?
A.To all the other shareholders of the corporations
B.To the Secretary of State
C.To individual citizens in the state the corporation is incorporated
D.To the CEO of the corporation
A nonprofit corporation will limit its powers pursuant to what?
A.The nonprofit corporation’s purpose clause
B.The nonprofit corporation’s articles of organization
C.The majority vote of the general class of shareholders
D.The majority vote of the preferred class of shareholders
Section 2(b) of the Robinson-Patman Act allows a seller to price discriminate in certain
geographic areas if the competition has a lower price. What can the seller lower the
price to according to section 2(b)?
A.To the same price as the competitor
B.To intentionally create a price that beats the competitor
C.10% discount off the list price of the seller
D.50% discount off the list price of the seller
What federal law has established three important time periods in the filing of shares to
public shareholders?
A.Securities Act of 1933
B.Dodd Frank Act of 2010
C.Sarbanes Oxley Act of 2002
D.Homeland Security Act of 2002
What is the term for a shareholders’ right to offer resolutions, to speak for and against
ideas at a shareholders meeting?
A.The right of full participation
B.The right to proxy
C.The right to profit
D.The right to incorporate
Although the Sherman Act indicates that €€every” restraint on trade is illegal, courts
have held that the Sherman Act is applied only when a competitor acts in what way?
A.Unreasonably
B.When the competitor is profiting
C.When the competitor has obtained a monopoly
D.When the corporation has 6000 or more employees
What is the main federal body concerned with the safety of consumer products?
A.Consumer Product Safety Commission (CPSC)
B.International Product Council (IPC)
C.Federal Consumer Watchdog (FCW)
D.Internal Revenue Service (IRS)
Ms. Bunny has been denied disability by the Social Security Administration (SSA). In
her denial letter it indicates she has the right to an appeal before an agency law judge.
Ms. Bunny decides to sue in district court. Her case will likely be dismissed for failing
to be ripe.
A bankruptcy by this party would cause a termination in the agency relationship:
A.Principal
B.Agent
C.Both principal and agent
D.Subagent
In agency law the term ‘independent contractor’ is referred to as what?
A.Nonemployee agent
B.Employee
C.Incorporator
D.Organizer
Mr. Olive and Mrs. Pickle enter into a partnership to provide IT consulting services.
The name of the business is IT Doctor. From the partnership account Mr. Olive
purchases a laptop and an iPad. Who owns the laptop and iPad?
A.Mr. Olive
B.Mrs. Pickle
C.The business IT Doctor
D.The government