BLaw chapter 20,21,22

false

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

C. a per se violation of the sherman act

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. not within the scope of the sherman act b. a deal that neither restrains trade or harms competition c. a per se violation of the sherman act d. subject to analysis under the rule of reason

d. the contents net quantity

Breadboard, Inc., makes and sells grain products. Breadboard's product packages must include... a. the type of consumer most likely interested in the product .b the company owners identity c. the restaurants and stores in which the product is sold d. the contents' net quantity

true

Consumers benefit when producers work to develop better products that can be sold at lower prices to beat the competition. t/f

c. ship orders within the time promised in its ads.

Direct Sales Corporation sells products to consumers over the phone, through the mail, and online. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, the firm may be liable for failing to... a. provide a cooling-off period of three days before shipping. b. notify consumers when orders are shipped. c. ship orders within the time promised in its ads. d. all of the choices.

false

Federal securities laws take priority over state securities laws. t/f

true

A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising. t/f

FALSE

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

false

A debt-collection agency can always contact a debtor at his or her place of employment. t/f

true

A false statement or unjustified claim about a competitor's products can result in liability for deceptive advertising. t/f

true

Anyone who has access to or receives inside information of a nonpublic nature and trades on it for personal gain can be liable under SEC Rule 10b-5. t/f

a. none of the choices

Brew House Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the Corporate World!' " The Federal Trade Commission would consider this ad... a. none of the choices b. false and misleading c. a deceptive half-truth d. impermissibly vague and general

false

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

true

Establishing the relevant product market is a key issue in monopolization cases because the way a market is defined can determine whether a firm has monopoly power. t/f

d. government prosecution and a private investor's suit

Ewan, the chief executive officer of Furniture Inc., intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock. Gary buys the stock and suffers a loss. Ewan may be subject to.... a. only a private investors suit b. only government prosecution c. negative publicity but no criminal prosecution d. government prosecution and a private investor's suit

a. disclose all essential information about the issuance of its securities

Fabrication Corporation is a public company whose shares are traded in the public securities markets. Under the Securities Act of 1933, Fabrication is required to.... a. disclose all essential information about the issuance of its securities b. meet investors' reasonable expectations to make a profit c. engage in market surveillance to deter undesirable practices d. contribute to the operations of national security exchanges

false

Federal law on menu labeling supplements but does not supersede previous state and local law on the same subject. t/f

true

If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful. t/f

true

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

false

It is in society's interest to condemn every acquisition of monopoly power as an antitrust violation even though a dominant market share may be the result of business acumen. t/f

a. can avoid high costs and complicated procedures

Jazz Inc. makes and markets music. The company wants to make an initial public offering of securities via the Internet. Most likely, this offering... a. can avoid high costs and complicated procedures b. is a way for investors to fairly break rules c. is an attempt to deceive and manipulate investors d. will result in higher expenses and extended oversight

true

Labels on fresh and frozen fruits and vegetables must indicate where the food originated so that consumers can know if the food was imported. t/f

d. a description of securities being offered for sale.

Market Data Corporation is required to file a registration statement with the Securities and Exchange Commission. This statement must contain a. a copy of prospectuses to be provided to investors. b. a record of pre-registration sales in securities. c. a statement that securities being offered for sale are worth the price. d. a description of securities being offered for sale.

true

Most private, small-business, noninvestment company offers of securities are exempt from the registration requirements. t/f

true

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

false

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

c. draft a formal complaint

Salsa Inc. complains to the Federal Trade Commission (FTC) about an ad broadcast by Taco Sauce Company, Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to... a. order salsa to broadcast similarly deceptive counter advertising b. issue a cease and desist order c. draft a formal complaint d. conduct negotiations between the competitors.

false

Securities must be registered under the Securities Act of 1933 for the Securities Exchange Act of 1934 to apply. t/f

false

T/F ...Securities can be sold before the effective date of the registration statement without restrictions.

true

T/F.....Any agreement among competitors to artificially fix prices or restrict output is a per se violation of Section 1 of the Sherman Act.

true

T/F....The definition of security in the Securities Act of 1933 includes interests that involve the right to buy a security on a national security exchange.

FALSE

T/F....To deem an agreement a per se violation of antitrust law, a court must determine whether the agreement actually constitutes a restraint on trade.

false

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims. t/f

true

The Sarbanes-Oxley Act of 2002 attempts to increase corporate accountability by imposing strict disclosure requirements and harsh penalties for securities laws. t/f

true

The Telemarketing Sales Rule applies to any offer—domestic or foreign—made to consumers in the United States. t/f

TRUE

The power to control the market price of a product is market power. T/F

false

The quality and safety of food may be important to consumers, but food labels that provide standard nutrition facts are a seller's option, not a requirement. t/f

TRUE

With respect to tainted foods, the focus of federal regulators has shifted from responding to incidents of contamination to preventing them. T/F

true

With respect to tainted foods, the focus of federal regulators has shifted from responding to incidents of contamination to preventing them. t/f

true

t/f....The definition of security in the Securities Act of 1933 includes interests that involve the right to buy a security on a national security exchange.