Greenmail refers to a target corporation’s purchase of its stock from an actual or
perceived tender offeror at a premium.
Statements of opinion and sales talk do not constitute false and deceptive advertising.
A limited liability company is an incorporated business entity.
Disparate-treatment discriminationoccurs when an employer treats a specific
individualless favorably than others because of that person’s race, color, national origin,
sex, or religion.
Any property, money, or other benefit received by the agent in the course of an agency
belongs to the principal.
A utility patentis a patent that may be obtained for the ornamental nonfunctional design
of anitem.
If the employee breaches the contract, the employer can recover the costs to hire a new
employee.
The FTC rules apply to consumer credit transactions in which the buyer signs a sales
contract that includes an order to pay.
A(n) ________ is a situation in which one corporation is absorbed into another
corporation and ceases to exist.
A) alliance
B) merger
C) share exchange
D) coalition
A two-party negotiable instrument that is a special form of note created when a person
deposits money at a financial institution in exchange for the institution’s promise to pay
back the amount of the deposit plus an agreed-on rate of interest upon the expiration of
a set time period agreed upon by the parties is known as a ________.
A) collateral note
B) check
C) certificate of deposit
D) bill of exchange
What is the difference between an insurance broker and an insurance agent?
A) An insurance agent works exclusively for one company, while an insurance broker
works for a number of insurance companies.
B) An agent requires a commission payment after a deal is made, while a broker
requires a service charge to be paid before the deal is made.
C) An agent represents the insured, while a broker represents the company.
D) An agent is authorized to sell insurance directly, while a broker can only mediate an
insurance contract.
Credit that requires collateral, which ensures payment of the loan, is referred to as
________.
A) unsecured credit
B) secured credit
C) equal credit
D) fair credit
The ________ is a federal statute that permits trademark owners and famous persons to
recover domain names that use their names where the domain name has been registered
by another person or business in bad faith.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
Which of the following is true for an auction with reserve?
A) The seller retains the right to refuse the highest bidder.
B) Invitations to make an offer are not allowed.
C) Goods cannot be withdrawn from sale after the offer has been made.
D) A bid once made cannot be withdrawn and is legally binding.
Which permits a secured lender to recover other property or income from a defaulting
debtor if the collateral is insufficient to repay the unpaid loan?
A) Redemption right
B) Deficiency judgment
C) Disposition of collateral
D) Retention of collateral
The federal proxy rules promote ________ during proxy solicitation.
A) full disclosure of the proxy
B) forfeiture of shares
C) meeting of all shareholders
D) direct representation of shareholders
The primary level of the national ambient air quality standards (NAAQS) protects
________.
A) flora
B) human beings
C) water bodies
D) climate
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16.
After a year, the company incurs a loss and the price of each share drops to $5. The
company reveals that it had deliberately not registered with the SEC before going
public and that it has no money to pay the investors. Which of the following holds well
in this context?
A) Scissorwire Inc. can register with the SEC at any point after the dip in shares.
B) The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek
criminal penalties.
C) The investors have been negligent in not verifying registration before purchase of
shares and cannot rescind their purchase.
D) Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.