BUL 2 FINAL EXAM STUDY GUIDE

Lena executes a separate written instrument to revoke her prior will....

A codicil

Star residence fails to provide the utilities to its tenants' apartments making their use and enjoyment

A constructive eviction

Kim and Leola own a warehouse in which they operate...

A joint tenancy

Ghani owns hillside vineyard. Ghazi conveys some of the land...

A life estate

Bayside inc. pays coastal marina to release its claim to a strip of waterfront property... None of the choices A quitclaim deed A deed of quiet enjoyment A warranty

A quitclaim deed

The conduct of edie and Floyd indicate an intention to create a trust....

A resulting trust

Inadvertently, brie loses her textbook during an afternoon...

Abondoned property

Anne obtains a liability insurance policy for bagels & coffee...

Act in good faith

With respect to anticompetitive behavior, the federal trade commission act...

All forms not covered under other federal antitrust laws

In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to be bailed goos can be limited by Common carriers Warehouse companies Ordinary bailees All of the choices

All of the choices

" A reasonably competent general practitioner of ordinary skills, experience, and capacity"

An attorney

Pump makers inc. makes pumps for fire trucks and conditions shipments of its products to quality...

An exclusive dealing contract

Beef Inc. merges with Chicken Corporation. Beef absorbs Chicken. After the merger, the surviving corporation is - a different, new entity - Diners Choice Inc. - Beef and Chicken - Beef only - Chicken only

Beef only

Bell, an accountant, enters into a contract to provide services to Consumer Staples Inc. Bell fails to meet a regulatory deadline for the work. Required to pay a fine, the company files a suit against Bell. Most likely, the court will order - Bell to pay the amount of the fine as damages to the firm - Bell to meet the next deadline but not to pay damages - Consumer Staples to drop its suit and pay its fine - Consumer Staples to secure another professional to finish the work

Bell to pay the amount of the fine as damages to the firm

Persons who favor the creation of a federal agency to regulate the production of genetically modified agricultural products should concentrate their lobbying efforts on - Congress - administrative agencies that oversee agricultural products - the United States Supreme Court - the president of the United States

Congress

Dean, a partner in Equipment Sales, applies for a loan with Farmers Bank allegedly on Equipment's behalf but without the authorization of the other partners. The bank knows that Dean is not authorized to take out the loan. Liability in the event of default will be imposed on - none of the choices - Dean - Equipment - Farmers Bank

Dean

Before going on a business trip, Fine leaves the key...

Delivers the key to harry

Baby goods inc buys child shops inch in an attempt...

Divesting itself of the control or ownership of child shops

Del, an accountant, prepares for Econo Inc., a financial statement that omits a material fact. The statement is included in Econo's registration statement filed with the Securities and Exchange Commission. Fran, who relies on the statement, and Gib, who does not, each buy Econo stock. Under Section 11 of the Securities Act of 1033. Del may be liable to - no one - Fran only - Fran and Gib - Gib only

Fran and Gib

Finn does not execute a will before he dies, with no surviving spouse or child.

Gage only

Administrative agencies can conduct searches without warrants in...

Highly regulated industries

Italo owns one hundred acres of fertile bottomland. With respect to the land...

Italo

Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with - Jana and Milo - Jana - Milo - Jana and Kwan

Jana and Milo

The executive branch of the government can exercise control over an administrative ...

Legislation that takes away the agency's power/the president's veto power

Les executes a will in which he leaves everything to his spouse, Mindy, and in which he appoints Norma to administer the estate...

Les only

Sharon dies without a will, survived by his granddaughter Daisy and her brother Ethan...

Lineal heirs

Silva prepares federal corporate income tax returns....

Negligent or willful misconduct

Say It inc and text talk inc are social media companies....

Not a violation because it is not anticompetitive

to transfer the title to Olivia's office building to Pete by deed requires - Pete's signature - Olivia's signature - all of the choices - the signature of the building's tenant

Olivia's signature

Pay-More Convenience Stores, Inc., is a franchisor. Randy operates a Pay-More franchise. Seth is one of Randy's employees. As a franchisor, if Pay-More controls the day-to-day operations of the business to a significant degree, it may be liable for tortious acts by - no one - any person on the franchise premises - only the persons with legitimate reasons to be on the franchise premises - Pay-More, Randy, or Seth

Pay-More, Randy, or Seth

Mario owns a beach house in Florida in fee simple...

Potentially infinite in duration

The federal trade commission act granted the federal trade commission the power to

Prevent businesses from engaging in unfair trade practices

Dairy cream inc. makes and sell ice cream...

Products that have identical attributes, such as frozen yogurt

Expressly exempt from antitrust laws because it is not interstate commerce...

Professional baseball

The securities and exchange commission decides to create a new rule relating to the dissemination of material nonpublic..

Publish a note of the proposed rule making

Robin stores her grain at a facility owned and operated by silo inc. at the end of the storage...

Return the same grain or grain of the same type, grade, and quantity

Revenue Inc. owns more than 90 percent of the shares of Sales Corporation. A copy of a plan for merger of Revenue and Sales must be sent to each shareholder of - both companies - Revenue - Sales - neither corporation

Sales

With respect to property, the law defines the right to

Sell or dispose of it, and prevent trespass onto it

Hoki, an accountant, accumulates working papers while performing an audit...

The accountant, with the client having a right of access to the papers

Buto buys a bus ticket at a window in the city bus depot before checking his backpack....

The backpack

Slim owns cattle. A pick-up truck, and stock in range corporation, which owns and operates... The cattle, the truck, and the stock The big r ranch Slim All of the choices

The cattle, the truck, and the stock

An attorney's conduct is governed by rules of professional conduct established by the state...

The international professional standards board

Big baller manufacturing corporations production, distribution, and marketing...

The relevant market

Roma obtains a fire insurance policy on her house...

Transferring and allocating risk

Croissants Corporation and Donuts Company transfer their assets to Edibles Inc. which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is - a business trust - none of the choices - a joint venture - a syndicate

a business trust

All of a certain corporation's small number of shareholders agree that the firm can operate without directors, bylaws, shareholder meetings, stock certificates, and formal records of shareholders' decisions. This firm is most likely - a close corporation - a corporation by estoppel - a de facto corporation - a de jure corporation

a close corporation

because it may result in a piercing of the corporate veil, shareholders' continuous use of corporate property should most especially be avoided by - a benefit corporation - a publicly held corporation - no corporation - corporate shareholders' liability is limited - a close corporation

a close corporation

after agreeing to rent a car from Drive-a-Round Inc., Eden is given the keys to one of the agency's cars by Fees. a Drive-a-Round employee. With respect to the bailed property, this is - a physical delivery - a constructive delivery - an involuntary delivery - not a delivery

a constructive delivery

Market Data Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Market Data is most likely - a corporation by estoppel - a de facto corporation - a de jure corporation - ultra vires

a de jure corporation

Richard owns Scholars Apartment House. His ownership rights include the right to sell or give away the property without restrictions, as well as to use the property for whatever purpose he sees fit. His ownership interest is - a fee simple absolute - a life estate - the right to adverse possession - the power of eminent domain

a fee simple absolute

Ellen conveys to Floyd an apartment with the right to possess and use the premises for a period of time specified in their express contract. This is - a periodic tenancy - a fixed-term tenancy - a tenancy at will - a tenancy at sufferance

a fixed-term tenancy

Sweetwater Corporation is incorporated in Texas. Outside that state, within the United States, the firm is - a domestic corporation - a foreign corporation - an alien corporation - a corporation by estoppel

a foreign corporation

Raceway LLC licenses the trademarks to its products to Stadium Markets Inc. to reproduce on clothing and other goods for sale. This is - a franchise - none of the choices - a partnership - a sole proprietorship

a franchise

Haute Dogs Inc. sells a franchise to llene's Cuisine, a lunch truck. Ilene's Cuisine is - a franchisee - a franchisor - a partner - a principal

a franchisee

Components Inc., a maker of vehicle parts, refuses to sell to DIY Repair Inc., a national vehicle service firm. The maker convinces Engine Parts Company, a competitor, to do the same. This is - a group boycott - a tying arrangement - a trade association - a market division

a group boycott

Greenway Corporation and Happy Trails, Inc., combine their efforts to build a network of biking and hiking trails along an unused railroad spur. Their form of business organization is - a business trust - a joint stock company - a joint venture - a syndicate

a joint venture

in her will, Delia makes a gift of $10,000 to Esteban. This is - a bequest - a devise - a legacy - residuary

a legacy

Instead of setting up a business to market her own products, Rita considers entering into a distributorship franchise with Sports Equipment Corporation. This involves the transfer of - a license - a trade name - the formula to make a certain product - the ownership of the business

a license

Resort Gift Shop is operated as a partnership, with five partners. Shan has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ted is the senior partner. With respect to management decisions - a majority of the partners must agree - Shan rules - Ted decides - unanimous consent is required

a majority of the partners must agree

dig inc. is the major wholesale distribute of heavy equipment in six states. Dig's closest competitor is Excavator Company... - a group boycott - a market division - a price-fixing agreement - a trade association

a market division

Lender Inc. owns all of the shares of Mortgage Inc. Lender Inc. is - a holding company - a parent company - a subsidiary corporation - all of the choices

a parent company

a limited liability company that wants to distribute profits to its members could avoid "double taxation" be electing to be taxed as - a person - a corporation - a sole proprietorship - a partnership

a partnership

Fish Purveyors Corporation and Gill Netters Inc. are the principal suppliers of crustaceans in their market. They agree that Fish Purveyors will sell exclusively to retailers and Gill Netters will sell exclusively to wholesalers. This is most likely - a situation that neither restrains trade nor harms competition - not within the scope of the Sherman Act - a per se violation of antitrust law - subject to analysis under the rule of reason

a per se violation of antitrust law

Power Inc. and the QualGas Corporation refine and sell natural gas. To limit the supply on the market and thereby raise prices, Power and QualGas agree to buy "excess" supplies from dealers and "dispose" of it. This is - a deal that neither restrains trade or harms competition - not within the scope of the Sherman Act - a per se violation of the Sherman Act - subject to analysis under the rule of reason

a per se violation of the Sherman Act

Brick & Mortar Stores Inc. signs a lease for a storefront owned by Commerical Properties Inc. The lease does not specify how long it is to last but does specify that rent is to be paid at certain intervals. This is - a periodic tenancy - a fixed-term tenancy - a tenancy at will - a tenancy at sufferance

a periodic tenancy

Erin, a shareholder of Finance inc., demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company. The firm refuses the request. On Erin's challenge, a court is most likely to hold that her request constitutes - harassment - unreasonable access to trade secrets and other confidential information - a proper purpose - potential abuse

a proper purpose

Household Products Corporation wants to make an offering of securities to the public. The offering is not exempt from registration under the Securities Act of 1933. Before the firm sells its securities, it must provide investors with - a forward-looking financial forecast - an investment contract - a prospectus - a statement that the securities for sale are worth the price

a prospectus

Lara owns and operates Market Place, a venue for growers, crafters, and others to sell their goods, without creating a separate business organization. She receives all the profits from the vendors' fees and concession sales. This is most likely - a partnership - a franchise - a sole proprietorship - none of the choices

a sole proprietorship

Without creating a separate business organization, Rey starts up Street Cruisers, a pre-owned auto sales enterprise. This enterprise is - none of the choices - a corporation - a franchisee - a sole proprietorship

a sole proprietorship

Retail Stores Inc. pays taxes collected by the appropriate state agencies. Like other state administrative agencies, these agencies were created by - a state legislature, through an enabling act - a state court, through the adjudicatory process - a federal administrative agency, through administrative regulations - the state governor, through an executive order

a state legislature, through an enabling act

The Food and Drug Administration (FDA) wants Kraft company to produce...

a subpoena

Tim is a witness in a controversy... - an order - an executive - a subpoena - a search

a subpoena

Edna and Flavia buy a cottage in Gulfport, Mississippi. On the death of either owner, that owner's interest in the dwelling passes to her heirs. This is - a joint tenancy - community property - a tenancy in common - ownership in fee simple

a tenancy in common

while moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is - abandoned property - converted property - lost property - mislaid property

abandoned property

Reliant Inc, files a suit against Saul, an accountant, under the antifraud... - acted with scientor - bought or sold a security - is incompetent - knows nothing about securities

acted with scientor

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires - none - only those acquired after the combination was proposed - an amount equal to the ratio of the firms' pre-merger market values - all

all

Carl starts up, and assumes the financial risk of, DataWorks, a new marketing enterprise. As a sole proprietorship, the enterprise must meet legal requirements relating to - none of the choices - licensing and registration - intellectual property laws - all of the choices

all of the choices

Robotics Inc. is a corporation. Its express powers can be found in - all of the choices - its articles of incorporation - the law of the state of incorporation - the state and federal constitutions

all of the choices

closed meetings of the us bureu of land management, a federal administrative agency are permitted when

all of the choices

during an administrative hearing, the parties may - give testimony - present evidence - cross-examine witnesses - all of the choices

all of the choices

Olivia is a partner in Pacific Traders. In the majority of states, with respect to any partnership obligations that Olivia does not participate in, know about, or ratify, she would be liable for - none of the obligations - all of the obligations, jointly and severally - all of the obligations, jointly but not severally - only the contractual obligations

all of the obligations, jointly and severally

Lipstick Inc. merges with Mascara Inc. Only Mascara remains. The articles of merger - amend the articles of Mascara - disappear once the merger is complete - create an entirely new organization - take the place of the articles of Mascara

amend the articles of Mascara

one of the elements of a bailment is - tangible, not intangible, items - non-exclusive possession of the bailed property by the bailee - an agreement for the return or disposal of the bailed property - conversion of the bailed property by the bailee

an agreement for the return or disposal of the bailed property

Sheila finds Tim's briefcase in her office after Tim leaves following their meeting. This is - a physical bailment - a voluntary bailment - an involuntary bailment - not a bailment

an involuntary bailment

under the Securities Act of 1933, securities include - any instrument representing corporate ownership or debt - a common enterprise reasonably expected to make a profit - an investment in one's own personal entrepreneurial effort - whatever a corporation represents to the public as profitable

any instrument representing corporate ownership or debt

Nell is considering forms of business organization for Optic Center, a medical eye clinic. An advantage of a limited liability partnership is that, depending on the applicable state statute, partners can avoid personal liability for - their own wrongful acts - any partnership obligation - their own and other partners' wrongful acts - none of the choices

any partnership obligation

Corporate Financial Inc., and its officers, directors, employees, and shareholders, buy and sell securities on behalf of themselves and their clients. SEC Rule 10b-5 applies to the purchase or sale of - a security by the corporation only - a security involving a corporate insider only - a security involving short-swing profits only - any security

any security

To bring a corporation into existence requires securing a corporate name that is - the same or deceptively similar to the name of an existing corporation - selected by the state of incorporation, for convenience and cost - promises to attract financial support from investors - available as a domain name, subject to state approval

available as a domain name, subject to state approval

An antitrust action is brought against Carrier Freight Company, alleging that a certain act constitutes the offense of attempted monopolization. To qualify, the act must - be likely to succeed - be unlikely to succeed - succeed - fail

be likely to succeed

Jade owns a loft that she leases to Key and Liu. If Jade sells the loft, Key and Liu - become the tenants of the new owner - remain Jade's tenants until the end of the lease term - must immediately vacate the premises - become the landlord

become the tenants of the new owner

Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche - both companies continue to exist - both companies cease to exist - only Market survives - only Niche survives

both companies continue to exist

Lou, an attorney, allows a statute of limitations to lapse on a claim by Metal Fabrication Company, a client. Lou - can be held liable for malpractice - had violated an ethical standard but cannot be held liable - is subject to criminal penalties under the statute of limitations - will be automatically disbarred

can be held liable for malpractice

a court may use the identity of the party who receives a benefit from an ordinary bailment to determine, with respect to the bailed property the standard of - negligence to be applied to the deal - proof required to show loss or damage - care required of the bailee - quality expected by the bailee

care required of the bailee

Dez is the chief financial officer of Elements Corporation, which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Dez must personally - certify that the statements are accurate - delegate the responsibility for preparing the statements - deliver the statements to the appropriate SEC officer - prepare the statements

certify that the statements are accurate

to help small businesses raise capital, the Securities and Exchange Commission allows the companies to advertise investment opportunities to the public. This most likely encourages - venture capitalizing - crowdfunding - piercing the corporate veil - private equity capitalizing

crowdfunding

Bev owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically - dissolve - transfer to Bev's heirs - reform with its employees as the owners - transfer to its creditors

dissolve

Start-Up LLC is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be - distributed according to members' proportionate ownership in the firm - divided equally among the members - forfeited to the state - reinvested in the business until the dispute is resolved

divided equally among the members

Salmon Company decides to combine its operations with Tuna Corporation to form United Seafood Inc. Salmon and Tuna are domestic corporations. The plan for Salmon and Tuna's combination must be approved by the shareholders of - each corporation - Salmon only - Tuna only - neither corporation

each corporation

Like other limited liability companies, for federal jurisdictional purposes, Rodeo Productions LLC is most likely a citizen of - all states in the United States - every state of which its members are citizens - any state in which it does business - no state - an LLC is not a "citizen"

every state of which its members are citizens

Bath & Kitchen Inc. is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, the firm wants a court to review it. First, however, the firm must - refuse to comply with the agency decision - petition other interested parties to oppose the decision - exhaust all possible administrative remedies - publish its opposition in the Federal Register

exhaust all possible administrative remedies

Rose is the life tenant of five hundred acres of land, on which is situated a previously existing mine. Rose has the right to - use the land, including the mine, for any purpose, without qualification - extract minerals from the mine, but not to dig a new mine - extract minerals from the mine and to dig new mines - none of the choices

extract minerals from the mine, but not to dig a new mine

Any conspiracy that has a substantial effect on U.S. commerce is within the scope of the Sherman Act, unless it occurs outside the United States t/f

f

Generally, the law recognizes a partnership as an independent entity. t/f

f

In a sole proprietorship, the owner is not the business. t/f

f

Section 2 of the Sherman Act essentially condemns the act of monopolizing, not the possession of monopoly power t/f

f

The Franchise Rule requires a franchisor to establish and enforce rules with respect to its franchisees. t/f

f

The Franchise Rule requires a franchisor to provide potential earnings figures to its prospective franchisees. t/f

f

a benefit corporation is designed to make a profit and thereby provide long-term shareholder benefit t/f

f

a businessperson who enters into a contract with an investor on behalf of a future corporation is not personally liable on the deal, even though the firm is not yet formed, because the nature of investment is risk t/f

f

a corporation is not liable for the misconduct of its agents or officers t/f

f

a court cannot dissolve a corporation for failure to commence business operations t/f

f

a director's right to access the corporation's books can be restricted by the corporate articles t/f

f

a divorce occurring after a will has been written does not revoke dispositions of property made under the will of the former spouse t/f

f

a finder of mislaid property has no obligation to return the property to the true owner t/f

f

a limited liability company is a citizen only of the state in which it was formed t/f

f

a partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm t/f

f

a price-fixing agreement or other anticompetitive agreement to control a portion of U.S. markets cannot be held to be per se violation of the antitrust laws if the agreement involves a foreign firm t/f

f

a shareholder may not petition a court for corporate dissolution t/f

f

a takeover is the acquisition of control over a corporation through a purchase of substantially all of its assets t/f

f

after final rules are issued, administrative agencies no longer conduct investigations of the entities that they regulate t/f

f

an accountant firm can lawfully perform both auditing and non-auditing services for the same company at the same time because the firm could otherwise be exposed to potentially massive liability t/f

f

an accountant should destroy working papers on the completion of an audit to avoid the possibility of having to provide evidence in a suit in which the accountant's competence is challenged t/f

f

an accountant who fails to discover every impropriety in a client's books is liable to the client on a negligence theory for any resulting loss t/f

f

an administrative law judge's decision on a dispute over an administrative action is the final order of the agency - no appeal is possible t/f

f

an easement in the right to go onto land owned by another and take away some part of the land itself or some product of the land t/f

f

an operating agreement is required for a limited liability company to exist, and it must be in writing t/f

f

appraisal rights do not normally apply to short-form mergers t/f

f

at the option of the partners, a partnership can be a pass-through entity or a taxpaying entity t/f

f

because a general bequest or devise does not single out any particular item of property to be transferred by will, a testator does not have to know the nature and extent of his or her property to create a valid will t/f

f

because commerce operates more efficiently when competitors cooperate, Section 1 of the Sherman Act permits rivals to consolidate market power t/f

f

because market power arises from access to consumer data, collecting such information is an antitrust violation t/f

f

because of their positions within the corporation, directors cannot be held liable for the crimes of corporate employees t/f

f

because title to the property of a limited liability company must be held in the name of one or more of its members, disputes over its ownership is avoided t/f

f

consideration is one of the necessary elements for an effective gift t/f

f

crowdfunding can be exempt from the registration requirements of the Securities Act of 1933 if shares are offered directly to investors t/f

f

despite a professional's breach of contract, the non-breaching client cannot obtain, as damages, the cost of penalties for failing to meet deadlines t/f

f

directors, but not officers, are fiduciaries of the corporation t/f

f

generally, a corporation that acquires any assets of another corporation needs to obtain shareholder approval for the purchase t/f

f

if a will does not provide how an estate will be distributed to grandchildren, under the per stripes method of distribution, all heirs in a certain class inherit equally t/f

f

if the members of a limited liability company do not stipulate in their operating agreement how voting rights will be apportioned, in most states, only the member-managers will be entitled to vote. t/f

f

in a bailment for the mutual benefit of the bailee and the bailor, the bailee need not exercise reasonable care in storing items or holding property t/f

f

in most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm t/f

f

in some states, a party can recover from an accountant for negligence only outside an accountant-client relationship t/f

f

in some states, an accountant is potentially liable to any user who relies on the professional's statement or report whether or not the reliance was forseeable t/f

f

in view of the reliance of numerous parties on the opinions of auditors, many courts have ceased to hold accountants liable to third parties for negligence t/f

f

issuers of securities offerings must comply with either federal or state securities laws, but not both t/f

f

misrepresenting facts in a registration statement or prospectus is known as puffery and does not violate the Securities Act of 1933 t/f

f

new administrative agencies are rarely created in response to a crisis t/f

f

on the completion of a bailment, the bailee may dispose of the property at will t/f

f

once a will is admitted to probate, the decedent's family members can agree among themselves how to distribute the estate, and no court order is needed to clear title to the assets t/f

f

one corporation that owns all of the shares of another corporation is a subsidiary corporation t/f

f

organizing as a limited liability company prevents the firm from attracting foreign investors t/f

f

preventing agencies from abusing their powers without hindering the agencies as they carry out their duties is not a governmental concern t/f

f

requiring users of social media site to agree to a certain terms and conditions to use the site is most likely an antitrust violation t/f

f

shareholders are not required to vote to approve a plan of merger t/f

f

the elements of a trust include actual delivery by the grantor to the beneficiary with the intent of passing title t/f

f

the management of a limited liability company must include at least one of the members t/f

f

the purpose of the Securities Act of 1933 is to regulate a security's investment price t/f

f

the shareholder's appraisal right doe not normally apply to sales of substantially all of the corporate assets t/f

f

there are no interests in land that do not include any rights to possess the property t/f

f

to avoid liability for securities violations, an accountant must use diligence in preparing a financial statement included in a registration statement - merely asking questions of a corporate officer or director meets the standard t/f

f

to avoid sanctions under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, scienter must exist t/f

f

to be a fixture, an item of personal property must be physically attached to the land in some way t/f

f

when the members of a limited liability company engages in fraud on the firm's behalf, the member is not likely to be held personally liable t/f

f

Miles obtains a property insurance policy from Nova Insurance Company for Miles's restored 1957 Chevy. Nova can cancel the policy if Miles - fails to pay the premiums - files a claim under the policy - appears as a witness in a case brought against Nova - any of the choices

fails to pay the premiums

Del and Efron want to form a limited partnership to do general business bookkeeping with an emphasis on tax accounting. In most states, a limited partnership will be created when Del and Efron - file a certificate of limited partnership - execute a partnership agreement - accept their first client - make their capital contributions

file a certificate of limited partnership

Components Assembly Corporation is a public company that is poised to issue securities that do not qualify for an exemption from registration. This means that the company must - file a registration statement with the SEC - issue the securities through an online registration site - refrain from issuing the securities to unregistered investors - register the securities with a national securities exchange

file a registration statement with the SEC

antitrust legislation is based on society's desire to

foster competition

Sheryl, an accountant, intentionally misstates a material fact to mislead Super Seller Inc, a client.... - fraud - malpractice - negligence - none of the choices

fraud

Rand, an accountant, includes a false statement in a report for Social Media Inc. that is filed with the Securities and Exchange Commission. When Teo buys stock in Social Media and loses money on the investment, he files a suit against Rand, alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Rand can show that he - intended to defraud Social Media, not Teo - intended to profit on stock trades generally, not only Teo's - is an otherwise competent accountant - had no knowledge that the statement was false

had no knowledge that the statement was false

Orbital Flights, Inc., is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 16(b) of the act covers​ - the declaration of dividends by Orbital's board of directors - the later re-registration of Orbital's securities - the short-swing activities of Orbital's insiders - the solicitation of proxies from Orbital's shareholders

he short-swing activities of Orbital's insiders

Kathy is a director of Line Production Inc. As a director, with respect to the corporation, Kathy is expected to subordinate - her personal interests to the corporation's welfare - the corporation's welfare to her personal interests - her knowledge and training in the corporation's interest - her business judgment in the shareholder

her personal interests to the corporation's welfare

Sally handwrites her will on a sheet of blank paper. This will is - invalid - holographic - nuncupative - residuary

holographic

the Financial Stability Oversight Council was created in response to a financial crisis to - identify and respond to emerging risks in the financial system - protect consumers from abusive practices by financial institutions - issue rules to cover almost every aspect of a business's operation - reduce the number and authority of business financial regulations

identify and respond to emerging risks in the financial system

under a contract, Oil Shale Corporation forbids Petro Inc., a wholesale buyer... - under any circumstances - if its effect is to stabilize the relevant market - if its effect is to substantially lessen competition - if it purpose....

if its effect is to substantially lessen competition

Mergers, consolidations, and share exchanges are authorized - in all states - in most states - in no states - by the federal government

in all states

to notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal - though a broadcast on a public television station - in a trade journal available to members of the industry - in the Federal Register - on its website

in the Federal Register

Ruby applies for a life insurance policy... - acknowledge the application... - attests to the truth... - evidence receipt of the payment... - indicate that policy is pending....

indicate that policy is pending

the executive committee of a publicly held corporation handles - the selection, compensation, and oversight of accountants who audit the firm's financial records - interim business decisions between board meetings - dividends, amendments to the bylaws, and the issuance of stock - none of the choices

interim business decisions between board meetings

Under intestacy law, if Darlene has no heirs, then the property of her estate - passes to a person designated by a probate court - is transferred to the state - devolves to a preselected charity - is held in trust for future beneficiaries

is transferred to the state

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can - issue a formal complaint - do nothing - take the matter to the U.S. Supreme Court - immediately impose sanctions

issue a formal complaint

Carl dies without a will, survived by his granddaughter Dora and her brother Elton. The grandchildren are Carl's - collateral heir - decedents - trustees - lineal heirs

lineal heirs

eSports Inc. offers entrepreneurs the opportunity to operate a franchise under the esports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor - can have a hypothetical basis - must have a reasonable basis - must have an actual basis - can have any or no basis

must have a reasonable basis

regarding a professional, malpractice is - competence - repetition - preparation - negligence

negligence

Lunch Truck Inc. owns more than 90 percent of the shares of Kitchens Company. A plan for merger of Lunch Trucks and Kitchens must be approved by the shareholders of - both corporations - Lunch Truck only - Kitchens only - neither corporation

neither corporation

Seaside Vistas leases an apartment to Tori. During a severe storm, the premises are destroyed by flood. Under most state laws, liable for the rent for the rest of lease term is - no one - Seaside and Tori in proportionate amounts - Seaside only - Tori only

no one

Ben is an accountant whose clients include Capital Inc. Under the Ultramares rule, if Ben is negligent in his work for Capital, he would be liable to the client and - any third party - no third party with whom the accountant is not in privity or "near privity" - third parties who are foreseen users of the work - third parties who are reasonably foreseeable users of the work

no third party with whom the accountant is not in privity or "near privity"

Operation Corporation acquires all of the assets of Process Inc. by direct purchase. Operation assumes the liabilities of Process if - a court does not impose the liabilities of Operation - the sale does not amount to a merger or a consolidation - Operation replaces Process's personal without continuing its business - none of the choices

none of the choices

as a director of InstaTalk Inc., Jim has a right of inspection. This right can be restricted by - the corporate articles - the bylaws - an act of the board - none of the choices

none of the choices

Manufacturing Inc. hires Neri, an accountant, to maintain the company's financial records. Neri does not act negligently or fail to perform any duty but fails to discover that Ollie, the firm's chief finance officer, is embezzling funds from the firm. With respect to the corporation's losses, the accountant is - not liable - liable for the entire amount - liable only for the amount that occurred after the accountant was hired - liable only for the amount that cannot be recovered from the embezzler

not liable

Obie operates Pizza Palace. Obie hires Qua to take and fill customers' orders at an hourly wage of $15.00, plus tips. Obie and Qua are - not partners, because Qua does not have an ownership interest or management rights in Pizza Place - not partners, because the pay includes an hourly wage - not partners, because the pay includes tips - partners in a partnership

not partners, because Qua does not have an ownership interest or management rights in Pizza Place

Patty executes a will, leaving her estate to her spouse Quentin. They have a daughter Rita. Later, Patty and Quentin divorce. Patty does not execute a new will before she dies. With respect to Patty's estate, Quentin is entitled to - everything - nothing - one-half - one-third

nothing

Vern is one of the three partners in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information - on a complete basis - only on an "as needed" basis - only for a reasonable purpose - only related to the partner's capital contribution

on a complete basis

Oil Inc. and Petro Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oit files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to - sole proprietorships - limited liability companies - corporations - partnerships

partnerships

Jason does not execute a will before he dies. With respect to his estate, the assets are distributed first to - pay the debts of the decedent - support the surviving spouse and children - benefit the collateral heirs - satisfy gifts to the lineal heirs

pay the debts of the decedent

Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosa is​ - not liable - only liable to the amount of her capital contribution - only liable in proportion to the number of partners in the firm - personally liable to the full extent

personally liable to the full extent

Don sets up Empty Vessel inc. (EVI) but fails to provide the firm with sufficient capital. Don formed EVI not to make a profit but to assume debts that he does not wish to pay. This most likely warrants - tricking Don into disclosing EVI's true purpose to Don's creditors - recognizing EVI as a de facto corporation - piercing EVI's corporate veil - requiring Don to commingle his personal funds and EVI's funds

piercing EVI's corporate veil

a group of consumers form Grocery Mart Cooperative. This form of business organization makes it possible for these consumers to - avoid personal liability for the acts of the cooperative - obtain an exemption from the state laws governing corporations - pay no taxes on their business income - pool their resources to gain an advantage in the marketplace

pool their resources to gain an advantage in the marketplace

Mike owns a beach house in North Carolina in fee simple. This ownership interest is - potentially infinite in duration - limited to the period of Mike's life - limited to the period of the lives of Mike and his immediate heir - subject to the withdrawal or recall of the previous owner

potentially infinite in duration

To drive its competitors out of a certain geographic segment of its market, Drones Inc., sets the prices of its products below cost for the buyers in that area. This is - price-fixing - smart marketing - predatory pricing - price discrimination

price discrimination

Beeline Inc. offers entrepreneurs the opportunity to operate a franchise under the Beeline trade name as a dealer that sells and leases Beeline equipment. To potential franchisees, Beeline must provide - no earnings figures - hypothetical earnings figures - projected earnings figures - none of the choices

projected earnings figures

the legally protected rights and interests that a person has in anything of established value subject to ownership is - accession - commonwealth - property - a bailee's lien

property

Ruby is interested in buying a franchise from Snax Stores Inc. This transaction, like other franchise deals, is regulated to protect - certain types of anticompetitive agreements - franchisors from dishonest prospective franchisees - prospective franchisees from dishonest franchisors - the government's power to restrict freedom of contract

prospective franchisees from dishonest franchisors

Randy is a director of STEM inc. As a director, with respect to the corporation, Randy is expected to use - prudent business judgment - perfect business judgment - prolonged business judgment - pluperfect business judgment

prudent business judgment

Phone Apps LLC is forming as a limited liability company. To become a manager-managed firm, Phone Apps' members must - refrain from participating in the firm's operations - form a joint venture - elect to apply the principle of partnership law to their firm - expressly adopt the corporate form of business organization

refrain from participating in the firm's operations

The securities and exchange commission (sec) wants to review certain documents of Trade Funds Inc. Whether it is permissible for the sec to request... - incriminating - relevant - technical - valuable

relevant

Kay and Lease-Away inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will - return the van - return the van or its equivalent - retain the van - none of the choices

return the van

Sergio rents an apartment from Taylor for a stated period of one year. The lease does not include a provision for renewal or extension. At the end of the lease term, possession of the apartment most likely - remains with Sergio absent notice by the tenant - remains with Sergio until notice by Taylor - remains with Sergio under an implied renewal or extension provision - returns to Taylor

returns to Taylor

The Federal Trade Commission (FTC) orders General Sales Company to reveal certain information. The firm complains to a court, arguing that the order is an abuse of the FTC's discretion. Like other agencies, the FTC can use a subpoena to - compel a party to testify, but not to obtain documents - obtain any information except what a party refuses to reveal - harass an uncooperative business or individual - reveal regulatory violations

reveal regulatory violations

Sims, an accountant, prepares for Taco Corporation a financial statement that omits a material fact. The financial statement is included in Taco's registration statement, which Uri reads. Uri buys Taco stock. Under Section 11 of the Securities Act of 1993, for Sims to be liable for the omission, Uri must show that he - relied on the omission - suffered a loss on the stock - knew about the omission before making the purchase - is a sophisticated investor

suffered a loss on the stock

A franchisee can operate as an independent businessperson and choose any business form but still obtain the advantages of a regional or national organization. t/f

t

A partner always has the power to dissociate from the partnership. t/f

t

Because federal agency rules have a binding effect, and their violators may be punished, certain established procedures must be followed in creating them t/f

t

Case law governing franchising emphasizes the importance of good faith and fair dealing. t/f

t

Every act of a partner concerning partnership business binds the firm t/f

t

If a business firm refuses to comply with an agency's request to inspect facilities or business records, the agency may resort. to the use of a subpoena t/f

t

In a sole proprietorship, the proprietor bears the burden of any liabilities incurred by the business enterprise. t/f

t

In many states, close corporations have more flexibility in determining their rules of operation t/f

t

Limited legal liability can be an advantage for a small business wishing to raise capital. t/f

t

One of the essential elements of a general partnership is a right to participate in the control of a business t/f

t

Providing investors with more information helps them make buying and selling decisions about securities t/f

t

State regulation of franchising is often aimed at protecting franchisees from unfair practices. t/f

t

The initial board of directors of a corporation is normally appointed by the incorporators when the corporation is created t/f

t

The same restrictions that apply to an assignment of the tenant's interest in leased property apply to a sublease t/f

t

a court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit t/f

t

a fee simple absolute is an estate or interest of land with no limits in terms of disposition or duration t/f

t

a shareholder's right to transfer his or her shares to another party can be subject to restrictions set out in the bylaws or a shareholder agreement t/f

t

a testator can revoke a will by having someone else tear it up in the testator's presence and at his or her direction t/f

t

a valid will is one that represents the maker's intent to transfer and distribute his or her property t/f

t

administrative agencies at various levels of government can work together and share the responsibility of creating and enforcing regulations t/f

t

although a written agreement is not required for a bailment of less than a year, because the Statute of Frauds does not apply, it is a good idea to have one t/f

t

an accountant who uncovers suspicious financial dealings in a client's books and fails to investigate or to inform the client is liable for any resulting loss t/f

t

an auditor who accepts a client's explanation regarding financial irregularities, despite contradictory evidence, could be considered grossly negligent t/f

t

any agreement among competitors to artificially fix prices or restrict output is a per se violation of Section 1 of the Sherman Act t/f

t

because the Administrative Procedure Act imposes requirements that all federal agencies must follow, it is an integral part of the administrative process t/f

t

by insuring property, its owners protect themselves t/f

t

choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm t/f

t

competition is not necessarily diminished solely as a result of market concentration t/f

t

digital goods, include virtual goods, are personal property with real value t/f

t

dissolution of a corporation can be brought about by an agreement between the shareholders and the board of directors t/f

t

forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements". t/f

t

if a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote t/f

t

if a joint venturer secretly profits from a project that was supposed to be a venture-related deal, the other joint venture may be awarded damages for the breach of loyalty t/f

t

if a lease requires the landlord's consent to an assignment, the landlord can nullify an assignment made without consent and evict the assignee. t/f

t

if the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation t/f

t

in both a tenancy in common, and a joint tenancy, each co-owner owns an undivided interest in the property t/f

t

in some states, limited partners cannot withdraw from a limited partnership t/f

t

insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public t/f

t

insurance is a contract in which the insurer promises to reimburse the insured or a beneficiary in the event of a loss t/f

t

life insurance requires that an insurable insurance interest in the continued life of the insured exist when a policy is obtained t/f

t

many bailments do not include all of the elements of a contract t/f

t

normally, a business firm complies with an agency request to inspect facilities because it is in the firm's interest to maintain good relations with the agency t/f

t

once an insurer has accepted a risk, and an event occurs that gives rise to a claim, the insurer has a duty to investigate to determine the facts t/f

t

personal property can be converted into real property by being permanently attached to it t/f

t

quorum requirements vary among jurisdictions t.f

t

shareholders' assumptions of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit t/f

t

stocks, or equity securities, represent the purchase of ownership in the business firm t/f

t

the Securities Exchange Act of 1934 provides for continuous periodic disclosures by certain publicly held companies t/f

t

the business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt t/f

t

the formalities of a will are intended to ensure that the testator understood his or her actions at the time a will was made and to help prevent fraud t/f

t

the legality of a tying arrangement depends in part on the agreement's likely effect on competition in the relevant markets t/f

t

the power to control the market price of a product is market power t/f

t

the president can limit the power of an administrative agency through the power to appoint its officers t/f

t

to avoid sanctions under the Securities Exchange Act of 1934, whoever solicits a proxy must accurately disclose all facts pertinent to the matter on which shareholders are to vote t/f

t

to focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors t/f

t

under the Sarbanes-Oxley Act of 2002, all members of a publicly traded corporation's audit committee must be outside directors t/f

t

under the Sarbanes-Oxley Act of 2002, chief financial officers must certify the accuracy of information in corporate financial statements t/f

t

when a member of a limited liability company guarantees payment of a loan to the firm, the member is personally liable for the obligation t/f

t

when a shareholder commingles personal and corporate interests so that the firm has no separate identity, the shareholder may be held liable for the firm's debt t/f

t

when accession occurs with a property owner's consent, there is not likely to be a dispute about who owns the property t/f

t

when directors do not act in the best interests of their corporation, the shareholders may sue them on the company's behalf t/f

t

when it comes to managing a corporation, the corporation relies on its board of directors and officers t/f

t

when the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it t/f

t

Espresso Brew Inc. uses a Web site to provide downloadable information to prospective franchisees. This electronic information is the equivalent of an offer that must comply with - no law - federal antitrust laws - the Federal Trade Commission's Franchise Rule - the Dealers Day in Court Act

the Federal Trade Commission's Franchise Rule

the procedure used by administrative agencies in fulfilling their basic functions is known as - the procedural process - the legislative process - the administrative process - the executive process

the administrative process

Property Management Corporation (PMC) owns several apartment buildings in 2 states. Regarding standards for maintenance of the buildings, PMC should consult - the applicable city ordinances and state statutes - the previous owners - the long-term tenants - the Uniform Landlord's Maintenance Manual

the applicable city ordinances and state statutes

the primary document needed to incorporate a business is - the website of the secretary of state of the state of incorporation - the minutes of the first organizational meeting - the articles of incorporation - the bylaws

the articles of incorporation

Sara and Tim form Urban Foods Inc. When it comes to managing Urban, the firm relies on, - the board of directors - the business judgment rule - the officers - the chief executive officer

the board of directors

before entering the dining room in Cafe Peru, Diego checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment may exist between the restaurant and its customer for - the coat only - the phone only - the coat and the phone - neither the coat nor the phone

the coat and the phone

Fifi, an independent contractor and technical writer, has a computer in her office. She has a copyright on her most recent work, Guide to Coding. Her tangible personal property includes - the computer - the copyright - the coding - all of the choices

the computer

an S corporation avoids taxes - none of the choices - the market level - the corporate level - the shareholder level

the corporate level

when a vacancy occurs on a corporate board, how the position will be filed is most likely set forth in - the corporation's articles or bylaws - shareholder proxies - the business judgment rule - the board's recorded minutes

the corporation's articles or bylaws

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm, Nora is liable for a breach of - the duty of care - contract - the duty of loyalty - none of the choices

the duty of loyalty

When a state administrative regulation conflicts with a federal administrative regulation - the federal regulation takes precedence - the state regulation takes precedence - a cost-benefit analysis is applied to determine which takes precedence - the regulations are equally valid within their juridictions

the federal regulation takes precedence

Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming that its planes flying over his land violate his property rights. To succeed, his best argument is

the flights are low and frequent, interfering with enjoyment of his land

Four grocery stores account for 80 percent of the retail food sales in Metro City. Two of the stores want to merge. In determining whether the merger violates the Clayton Act, the most crucial factor is - the market shares of the firms in their market - the market value of the firms' shares in the stock market - the comparative value of each store in a market for their sale - the total value of the market in relation to the stock for sale in the stores

the market shares of the firms in their market

Brad and Carol are partners in Doctors for Children, a medical clinic. Brad's dissociation from the firm results in - the automatic termination of the firm's legal existence - the partnership's buyout of Brad's interest in the firm - the immediate maturity of all, partnership debts - the temporary suspension of the partnership's business

the partnership's buyout of Brad's interest in the firm

Rudy Gobert owns a phone, tablet, and a patent on an app... - the phone - tablet - the patent - all of the choices

the patent

Urban City wants to acquire undeveloped private land within the city limits to construct a public park. The city brings a condemnation proceedings to obtain title to the land. This is - the right to adverse possession - an easement - a profit - the power of eminent domain

the power of eminent domain

The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of - no government official or entity - the president - state legislation - the U.S. Attorney General

the president

Snowboards Inc. refuses to sell its products to Timber Winter Sports Stores, Inc., a retail snowboard dealership. This violates Section 2 of the Sherman Act if Snowboards has monopoly power and - none of the choices - Timber has or is likely to acquire monopoly power - the refusal is unilateral - the refusal has an anticompetitive effect on the market

the refusal has an anticompetitive effect on the market

the identify of the party who receives a benefit from an ordinary bailment dictates - the rights and liabilities of both parties - the return or disposal of the bailed property at the end of the bailment - the extent of the bailment period - none of the choices

the rights and liabilities of both parties

Risk Insurance inc. has a board of five directors. Risk's bylaws do not state any quorum requirements. As in most states, a quorum for Risk's board meeting is - one director - three directors - four directors - all of the directors

three directors

Otto is a limited partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligations - in proportion to the number of partners in the firm - to no extent - to the extent of his capital contribution to the firm - to the full extent

to the full extent

under the doctrine by respondeat superior, a corporation can held liable for - acts perpetrated by its market competitors - breaches of contract by its customers and suppliers - torts committed by its agents or officers - none of the choices

torts committed by its agents or officers

Han is a shareholder of Insulation Inc. When the director fail to undertake an action to redress a wrong suffered by the firm, Han files a suit on its behalf. Any damages recovered by the suit will go to the firm's - shareholders, excluding Han - treasury - directors - shareholders, including Han

treasury

Movie Time Corporation files a registration statement and delivers a prospectus to the appropriate parties. These items are intended to enable the evaluation of certain financial risks by - market professionals to explain to all investors - government regulators to disclose to the general public - sophisticated investors only - unsophisticated investors

unsophisticated investors

Leo borrows Mae's car to drive Nina to the airport. Considering the purpose of the bailment, Leo has the right to - compensation from Nina - reimbursement from Mae for any parking costs - use the bailed property - none of the choices

use the bailed property

corporate shareholders will most likely be held personally liable for the firm's debts if they - insist on separating their personal interests from those of the firm - refuse to transfer their shares to dilute control of the firm - encourage the firm to unsuccessfully enter a new market - use the firm to perpetrate a fraud

use the firm to perpetrate a fraud

Home Meals Corporation is poised to issue securities that, under the Securities Act of 1933, are exempt. This means that the securities can be sold - only after being registered - on the basis of nonpublic information - within any 6-month period by certain insiders - without being registered

without being registered

Riley is elected as a director to the board of Salty Snacks, Inc. He will most likely serve for a term of one - decade - four-year period - lifetime - year

year

for a will to be valid, the testator's signature must appear on it, generally at the end t/f

t

negligence cases against professionals often focus on the standard of care exercised by the professional t/f

t

a business, but not an individual person, can be deemed liable for monopolizing or attempting to monopolize trade or commerce in violation of the antitrust laws t/f

f

insurance contracts are usually obtained through an agent, who works as an independent contractor t/f

f

Rafe signs a one-year lease for an apartment owned by Suki. Rafe is a student and needs the apartment only for two semesters, at the end of which he plans to sublet it for the rest of the term. Rafe's tenancy is - a periodic tenancy - a tenancy at will - a tenancy at sufferance - a fixed-term tenancy

a fixed-term tenancy

Bio Med Corporation makes and sells Curative, the most prescribed name-brand pain-relief medication. Drugs Inc. has the potential to make a generic version of the same drug. Bio Med agrees to pay Drugs not to make or sell the generic. This agreement is most likely - a deal that neither restrains trade or harms competition - not within the scope of the Sherman Act - a per se violation of the Sherman Act - subject to analysis under the rule of reason

a per se violation of the Sherman Act

every threat of monopolization is condemned as a violation of antitrust law even if the alleged offender does not possess some degree of market power t/f

f

if the landlord sells the leased property, the tenant becomes the tenant of the new owner t/f

t

price-fixing agreements are considered violations of the Sherman Act because of their real potential adverse effects on open and free compeition t/f

t

Carbon Company's liabilities exceed its assets. The firm hires Dobie, an accountant, to certify a balance sheet showing a positive net worth. Equity Bank relies on the balance sheet to make a loan to Carbon. The firm defaults. Under the Ultramares rule, Dobie is most likely not liable because he - did not owe a duty of care to any third party - is not responsible for his client's finances - finished his work before the loan and default - was not in privity with the bank

was not in privity with the bank