Business Law 2023 Final Exam

Under Sarbanes Oxley CEOs and CFOs are required to certify financial statements and can face criminal penalties if the statements are fraudulent a. True b. False

a. True

When the seller promises that a product is good for a particular activity, the seller is implying the warranty of merchantability. a. True b. False

a. True

Edna wants to go into business as a bookkeeper. She has almost no money, but her great accounting education at FGCU made her a valuable asset to the community. The lowest cost method of going into business for Edna will a. An S corporation b. A sole proprietorship c. A partnership d. limited liability company

b. A sole proprietorship

Erica was the head of Envirolife, an environmentalist organization. On behalf of Envirolife, Erica filed a lawsuit to restrict the cutting of forests in the Pacific Northwest. This type of lawsuit is known as a a. wrongful-damage suit. b. citizen suit. c. organization suit. d. regulatory enforcement suit.

b. citizen suit.

The Fair and Accurate Credit Transactions Act requires a. states to set up investigative agencies for the investigation of identity theft and unfair debt collection practices. b. credit bureaus to stop reporting fraudulent account information from the time a consumer alleges identity theft. c. corporations to charge a fair and equitable interest rate when leasing capital equipment. d. Businesses that lease goods to consumers to provide consumers with full disclosure of the terms of the lease.

b. credit bureaus to stop reporting fraudulent account information from the time a consumer alleges identity theft.

Partners in an LLP may choose to have LLP income taxed as a corporation. a. true b. false

b. false

Under the Consumer Review Fairness Act, a business may not a. penalize consumers for late payments on lease payments made within 10 days of the due date. b. have a contract allowing them to sue a consumer for posting an honest negative review of them. c. review credit reports of customers before deciding whether to extend them credit on a lease. d. sell a customer's credit history to credit reporting agencies for anything of value

b. have a contract allowing them to sue a consumer for posting an honest negative review of them.

Iggy placed his guitar in a spot backstage, intending to retrieve it after the concert, but he forgot about it and headed back to the hotel later to party with other members of the band. Under the common law of found property, Iggy's guitar would be a. treasure trove. b. mislaid. c. lost. d. abandoned.

b. mislaid.

The Truth in Lending Act covers creditors that a. extend credit for real estate b. regularly engage in extending credit for goods and services. c. lend money to their relatives. d. occasionally extend credit for goods and services.

b. regularly engage in extending credit for goods and services.

Administrative law is a. the law that governs the body of common law precedent in the United States. b. the body of law that defines, regulates and limits the exercise of authority of federal regulatory agencies. c. advisory in nature and not binding upon federal agencies. d. the basic principles that govern the U.S. Constitution.

b. the body of law that defines, regulates and limits the exercise of authority of federal regulatory agencies.

Constantine and William are in business selling cell phones. Both have contributed $10,000 to the business. Constantine runs the day-to-day operations of the business partnership and makes the decisions on its direction. Constantine and William signed a partnership agreement stating that William would be liable for debts of the partnership only up to his $10,000 contribution. Which is true of this arrangement? a. Constantine is a limited partner and William is a general partner. b. Both Constantine and William are limited partners. c. Constantine is a general partner, and William is a limited partner. d. Both Constantine and William are general partners.

c. Constantine is a general partner, and William is a limited partner.

Which of the following is not intellectual property a. A Trademark b. Trade Secret c. Military Aircraft d. A Patent

c. Military Aircraft

In which of the following occasions would formal rulemaking be used by a federal agency? a. Determining legislative authority b. Reasoned decision making c. Revision or final publication d. Conclusive proposal

c. Revision or final publication

What is the last step in the agency rulemaking process? a. Determining legislative authority b. Reasoned decision making c. Revision or final publication d. Conclusive proposal

c. Revision or final publication

Which of the following is not correct of citizen suits? a. They authorize citizen interest organizations to file lawsuits against government entities. b. They authorize citizen interest organizations to file lawsuits against polluting businesses. c. They provide a source of income for citizen watchdog groups, as they are allowed to profit from enforcement of the environmental regulations. d. Citizen suits authorize citizen interest organizations to file lawsuits against both government entities and polluting businesses, but citizen suits may not be commenced against a polluter if the government agency is already prosecuting the same violator.

c. They provide a source of income for citizen watchdog groups, as they are allowed to profit from enforcement of the environmental regulations.

Which of the following is true of Subchapter S corporations? a. They are legal, taxable entities separate from the owner for income tax purposes. b. When they distribute dividends, no tax is paid. c. They receive flow-through tax treatment. d. They are subject to double taxation.

c. They receive flow-through tax treatment.

Partners seek the protection of the Limited liability partnership (LLP) form of business to deal with the a. issue of general partnerships having less than one partner. b. None of the answers are correct c. To compartmentalize partnership liabilities generated by acts of other general partners and/or the debts of the partnership itself and protect each partner's individual assets. d. To account for differences between general and limited partners.

c. To compartmentalize partnership liabilities generated by acts of other general partners and/or the debts of the partnership itself and protect each partner's individual assets.

Which of the following is personal property? a. an office building b. a house c. a car d. a ranch

c. a car

What function is Horatio, an administrative court judge in a federal agency, fulfilling when he decides whether a corporation violated a rule of his agency? a. rulemaking b. investigation c. adjudication d. enabling

c. adjudication

Theophilus sued the Department of Train Punctuality (DTP) for alleged failure to enforce their own regulations, which resulted in thousands of dollars of losses to his business. Which of the following would this action be known as? a. class action lawsuit b. substantive suit c. citizen suit d. sunshine suit

c. citizen suit

Katherine gave the permanent right to Cosgrove Electricity to run and maintain a power line across her property in consideration of $5,000. This was transferred by deed. This is known as a/an a. license by transfer. b. license by permanent right c. easement by grant d. easement by necessity

c. easement by grant

In Florida, a Limited Liability Partnership is formed by a. filing articles of organization with the Florida Department of State b. filing a articles of dissociation c. filing a Statement of Partnership Authority and a Partnership Registration Statement d. filing a certificate of limited partnership with the Florida Department of State

c. filing a Statement of Partnership Authority and a Partnership Registration Statement

Sean, Gertie and Manfred formed a limited liability corporation (LLC) and each became a 1/3rd Member. The Members appointed Manfred as Manager. The Manager has the sole authority to operate the business. This type of LLC is known as a. member-managed LLC b. operational LLC. c. manager-managed LLC d. member activated LL

c. manager-managed LLC

The fundamental rationale behind securities regulation is to a. prevent the public from interfering in the internal operations of a corporation. b. secure the rights of corporate directors and executives to make any reasonable decision that they see fit in the management of a corporate entity. c. protect investors and ensure public confidence in the integrity of the securities market. d. ensure the profitability of companies that sell securities on a public exchange.

c. protect investors and ensure public confidence in the integrity of the securities market.

Asianna, Barry, Corrina and Dontelle are members of ABCD, LLC. After three years ABCD closed. The bank that extended them a loan sued for repayment of $100,000. No Member signed a personal guaranty. The bank may a. sue the LLC but may not sue Asianna, Barry, Corrina and Dontelle. b. sue Asianna, Barry, Corrina and Dontelle personally for $25,000 each under rules pertaining to LLCs. c. sue neither the LLC nor Asianna, Barry, Corrina or Dontelle because an LLC and its members are sheltered from lawsuits due to limited liability rules. d. sue Asianna, Barry, Corrina and Dontelle for the entire $100,000 each jointly and severally.

c. sue neither the LLC nor Asianna, Barry, Corrina or Dontelle because an LLC and its members are sheltered from lawsuits due to limited liability rules.

Paul, John, George and Richard decided to form a limited liability corporation (LLC) for their music business. They want to clearly define the way members share in profits and losses, receive distributions, leave the company and dissolve he company. This information would be included in a. federal law which sets requirements for LLC agreements. b. the Uniform Limited Liability Company Act. c. the operating agreement d. the Revised Uniform Limited Liability Company Act.

c. the operating agreement

The Body of law that defines and regulates federal Agencies and limits the exercise of delegated power by these agencies is known as: a. The United States Code b.Department law c. The Code of Federal Regulations d. Administrative law

d. Administrative law

Which of the following is not an Administrative Agency function related to the formation, implementation, and enforcement of regulations intended to administer a federal law? a. Policy Making b. Investigation and Enforcement c. Licensing and Permitting d. All are Administrative Agency Functions

d. All are Administrative Agency Functions

An implied warranty of merchantability will apply to all of the following transactions except a. Bauman, a dealer of motorcycles, selling a motorcycle to Ketchum, a private party consumer. b. Markel, a retailer of vacuum cleaners, selling a vacuum cleaner to Bart, also a retailer of vacuum cleaners. c. Anson, a distributor of cars, selling a car to a Hunter, a dealer of cars. d. Cartwright, a private party, selling his airplane to O'Brien, a private party consumer.

d. Cartwright, a private party, selling his airplane to O'Brien, a private party consumer.

Which of the following is not true? a. The existence and governance of Corporations are defined by State Statutes. b. Corporations are managed by Directors in accordance with the Articles of Incorporation and Bylaws c. Corporations and their obligations are generally distinct from their owners. d. Corporations are not permitted to file lawsuits

d. Corporations are not permitted to file lawsuits

Superfund requires that all states have emergency procedures in place in the event of a chemical spill. a. True b. False

a. True

The Environmental Protection Agency (EPA) does not work with other agencies to carry out its duties. a. True b. False

a. True

The Magnuson-Moss Act requires a label with warranty conditions to be placed on all products that cost $10 or more. a. True b. False

a. True

The National Environmental Policy Act (NEPA) applies to interstate highway construction. a. True b. False

a. True

The government must pay reasonable compensation when it exercises its right of eminent domain. a. True b. False

a. True

The sales of securities in the secondary market does not raise capital for the business whose stock is sold. a. True b. False

a. True

A statement such as: "The buyer agrees to take the table with all faults and as is" disclaims warranties. a. True b. False

a. True

Capitalization refers to how the business will fund its operations. a. True b. False

a. True

Car performance standards are regulated by the EPA. a. True b. False

a. True

Expressly false statements can result in breach-of-warranty lawsuits. a. True b. False

a. True

In order to file a lawsuit to enforce an environmental regulation, an individual must be authorized to do so by the statute. a. True b. False

a. True

It is possible to be in rightful possession of personal property without having actual ownership of the property. a. True b. False

a. True

Many express warranties are made through advertisements. a. True b. False

a. True

Most of the common law that regulated administrative law has been codified in the Administrative Procedures Act. a. True b. False

a. True

Prior to the passage of the Sarbanes-Oxley Act, auditing in the accounting profession was self-regulating. a. True b. False

a. True

Publishing a new rule in the Federal Register is the first step in the rulemaking process after research and study are performed. a. True b. False

a. True

Rule 10(b)(5) of the 34 Act is aggressively used by the SEC in terms of insider-trading enforcement. a. True b. False

a. True

Grady formed a sole proprietorship, Grady's Auto Paint Specialties (GAPS). He names the Company GAPS, LLC and files for a fictitious name, Grady's Auto Paint Specialties. GAPS LLC enters into a contract with Redding to touch up the original paint on his rare collectible Ferrari. Grady negligently ruined the original paint job, reducing the value of the car by $100,000. Redding is suing Grady for the full amount. GAPS has only $60,000 in total assets. Assuming he wins his case and gets a judgment for the full $100,000, what amount can Redding collect? a. $60,000 because Grady was operating within the scope of the business purposes of his LLC. b. None of the Above. c. $100,000 because sole proprietors are unlimitedly liable to their customers for claims in contract and tort. d. $80,000, because that is probably fair.

a. $60,000 because Grady was operating within the scope of the business purposes of his LLC.

Carlton was a director of Rich Financial, Incorporated. Which of the following are duties that Carlton owes to Rich Financial? a. A duty of care and a duty of loyalty. b. A duty of business judgment and a duty of obedience. c. A duty of private interest and a duty of rational belief. d. A duty of rationality and a duty of independence

a. A duty of care and a duty of loyalty.

Mylie has a clothing store as a sole proprietorship. Her shop has a net income at the end of the year of $200,000. She took a salary from this of $60,000. The remaining money is left in her bank account. a. At tax time, Mylie pays taxes on $200,000. b. At tax time, the business pays taxes on $200,000. c. At tax time, the business pays taxes on $200,000, and Mylie pays taxes on $60,000. d. At tax time, the business pays taxes on $140,000, and Mylie pays taxes on $60,000.

a. At tax time, Mylie pays taxes on $200,000.

Jason and Alexandra enter into a partnership to sell food products Jason has developed. The products sell rapidly however, some persons have a severe allergic to the products which can result in hospitalization. One of the customers who purchased the product was hospitalized for 4 days and sues the partnership for medical expenses of $100,000. Which of the following is true a. Both Jason and Alexandra are jointly and severally liable for any contractual or tort damages that result from the sale of their products under partnership law. b. Only Jason is liable for the damages caused because he is the developer of the product under product liability rules c. Neither Jason nor Alexandra are liable to the customer, because the injury was unforeseeable under the Pfalsgraf case. d. None of the above.

a. Both Jason and Alexandra are jointly and severally liable for any contractual or tort damages that result from the sale of their products under partnership law.

Porter and Dolly are in a business to sell Porter's locally famous chili. Dolly agrees to handle the sales and marketing and Porter agrees to oversee making the chili. They do not enter into a formal agreement, written or otherwise. Which of the following business types is this? a. General partnership type known as an implied partnership. b. Limited liability partnership. c. Sole proprietorship because there was no formal agreement. d. Joint liability investiture.

a. General partnership type known as an implied partnership.

Which of the following is not an example of deceptive advertising? a. Honest Al, a used car dealer, claiming in a TV advertisement that Honest Al's cars were the "best in the city". b. Shady Jen's Bicycles claiming that an item was being sold at a "clearance price" when in reality it was the standard price. c. Cheapco Groceries raising the retail price of bananas by artificially inflating the original retail price from 79 cents a pound to $1.29 a pound so that when they marked down bananas by 25 percent, they looked more marked down than they actually were. d. Barnacle Bill's Boat Shop incorrectly stated that his main competitor, Candy's Boat Emporium, was selling their boats for 10 percent more than they were actually selling them

a. Honest Al, a used car dealer, claiming in a TV advertisement that Honest Al's cars were the "best in the city".

Jadavian purchased a truck from Antonio for a fair market value of $10,000. One year later, a sheriff's deputy told Jadavian the truck had been stolen. Jadavian had no knowledge of the theft. May Jadavian keep the truck? a. Jadavian will lose the truck because he cannot obtain good title to stolen goods. b. Jadavian will lose the truck because he had a duty to verify that Antonio was the rightful owner. c. Jadavian may keep the truck if the state statute of limitations regarding ownership by possession of personal property had run. d. Jadavian may keep the truck because he bought it in good faith, gave fair market value, and had no reason to believe it had been stolen.

a. Jadavian will lose the truck because he cannot obtain good title to stolen goods.

Tamelin was a shareholder of Low Country Incorporated, a corporation. Which of the following is a right that Tamelin has? a. To elect and remove directors if she has consent of the majority of shareholders. b. To elect and remove directors if she has consent of a plurality of shareholders. c. To elect and remove officers if she has consent of the majority of shareholders. d. To manage the day-to-day affairs of Low Country.

a. To elect and remove directors if she has consent of the majority of shareholders.

A municipality is typically divided into zones in which only certain uses of the land are permitted, such as industrial, retail, and residential uses. a. True b. False

a. True

Misty and Kate opened a coffee shop in their home state, Massachusetts. They incorporated their shop, Misty Kate's Coffee Adventure, Inc., in the state of Massachusetts. In Massachusetts, Misty Kate's would best be characterized as a. a domestic corporation. b. a local corporation. c. an internal corporation d. a native corporation.

a. a domestic corporation.

The partners of a limited liability partnership owe __________ duties to the other members of an LLP. a. absolute b. primary c. fiduciary d. limited

a. absolute

The authority of the government to take a person's private property is called a. eminent domain. b. a statutory seizure. c. public use. d. a constructive eviction

a. eminent domain.

The Safe Water Drinking Act sets minimum water quality standards for a. every public water system and every source of drinking water. b. federal public water systems and reservoirs only. c. federal and state public water systems and reservoirs only. d. federal agencies only, requiring that they issue an environmental impact statement when taking any action that could affect the drinking water supply.

a. every public water system and every source of drinking water.

Fiduciary duties are the duties that a. general partners owe to ensure they are acting in the best interest of the partnership. b. customers owe to pay debts to a partnership. c. general partners owe to ensure they are acting in their own best interests. d. limited partners owe to act in their own best interests.

a. general partners owe to ensure they are acting in the best interest of the partnership.

The Federal Department of Arts and Crafts has approved a new type of glue for use in collages. NEPA procedures require that an environmental assessment of this action be performed a. if the environmental impact of using this glue is unknown. b. under all possible circumstances. c. under no circumstances unless by presidential order. d. if the environmental impact of the glue is known and quantified.

a. if the environmental impact of using this glue is unknown.

The management of Secure Securities, Incorporated decided to go public and issued stock on the New York Stock Exchange. This is known as the a. primary market. b. secondary market. c. preferred market. d. common market.

a. primary market.

Talia, Shemp and Lola formed a corporation under the name Dependable Health Solutions, Inc., and advertise their services nationwide. All stock is owned by Talia, Shemp and Lola as principals, and none was offered to anyone outside the corporation. This would be classified as a a. privately held corporation b. privately held public corporation. c. privately held professional corporation. d. privately held public professional corporation.

a. privately held corporation

The Clean Air Act requires that a. state governments determine the best way to achieve National Ambient Air Quality Standards. b. individuals face penalties of up to twenty years in prison for violations of the regulations. c. state governments determine how to best achieve economic incentives. d. the federal government determine the best way to achieve National Ambient Air Quality Standards.

a. state governments determine the best way to achieve National Ambient Air Quality Standards.

If a seller does not make a specific representation about a product a. the buyer may still be able to pursue an action against the seller based on an implied warranty. b. the buyer has no right to sue the seller, as protections are only provided by law when a seller misrepresents a material fact. c. the buyer may still be able to pursue an action against the seller based on an express or implied warranty. d. there will be no warranties, either express of implied.

a. the buyer may still be able to pursue an action against the seller based on an implied warranty.

A corporation may be a Manager of an LLC. a. true b. false

a. true

Which of the following is used to separate and keep apart commercial, residential, and industrial properties? a. zoning b. variances c. easements d. eminent domain

a. zoning

Alisa, Cameron and Heike are interested in forming a corporation prior to forming the corporation they enter into a contract to purchase 1000 blue widgets from Gus's widget manufacturers. Alisa, Cameron and Heike get into an argument and Cameron refuses to file the articles of incorporation and disavows all interest in the corporation. As a result: a. Gus will have to declare the contract null and void b. Alisa, Cameron and Heike are jointly and severally liable for all damage resulting from a breach of the contract. c. Cameron's disavowal of corporation exempts him from liability for completing the contract an sharing in payment for the widgets d. Alisa and Heike are absolved from liability under the contract because of Cameron's intentional act

b. Alisa, Cameron and Heike are jointly and severally liable for all damage resulting from a breach of the contract.

Which piece of legislation prohibits denying an applicant credit on the basis of discrimination? a. Fair Credit Act. b. Equal Credit Opportunity Act. c. Truth in Lending Act. d. U.S. Constitution

b. Equal Credit Opportunity Act.

A life estate gives the owner more rights than a fee simple. a. True b. False

b. False

Administrative agencies are not empowered to hear cases of alleged violations of their regulations and must depend on the federal courts for adjudication. a. True b. False

b. False

If there is a written agreement between the principals to form a corporation, there is no need for the corporation to formally file articles of incorporation with the state. a. True b. False

b. False

Magnuson-Moss requires that a seller offer a warranty to buyers. a. True b. False

b. False

Only property owners are liable for cleanup costs of contaminated sites under Superfund laws. a. True b. False

b. False

Records of agency personnel matters are open to the public under the Freedom of Information Act. a. True b. False

b. False

Substantial modifications to proposed rules may be published without going through the entire rulemaking process again. a. True b. False

b. False

The Resource Conservation and Recovery Act (RCRA) applies only to active facilities, not future ones. a. True b. False

b. False

The Supreme Court has held that agencies have very narrow discretion regarding when and whom to regulate. a. True b. False

b. False

The most common way for commercial real estate to be transferred is by inheritance. a. True b. False

b. False

Daniel owns 30 acres of land in fee simple and executes a Deed granting the following: To Mary for life, remainder to Charles, but if Charles is not alive then to Samuel. Mary's interest in the Property is called a. Fee Simple for Life b. Life Estate c. Leasehold d. Fee Simple Defeasable

b. Life Estate

The Securities Act of 1934 would focus on a. John, a purchaser of common stock from DEF Corporation, the issuer, in an initial public offering. b. Luke, a purchaser of common stock on a public exchange from another investor. c. Mark, a purchaser of preferred stock from GHI Corporation, the issuer, in an initial public offering. d. Matthew, a purchaser of bonds on a public exchange from Laura, another investor.

b. Luke, a purchaser of common stock on a public exchange from another investor.

Which of the following functions and powers do administrative agencies not exercise a. Executive b. Moral c. Legislative d. Judicial

b. Moral

Liability for oil spills is established by the a. Deepwater Pollution Act. b. Oil Pollution Act. c. CAFE standards. d. Transport and Air Quality program.

b. Oil Pollution Act.

Tamara, Alexander and Fatima start an LLC and desire to obtain partnership tax treatment for their venture. Which of the following is true a. If the LLC desires to be treated as a partnership it must elect out of the default classification of association for a multimember LLC b. Partnerships do not pay taxes, Partners do. So each member will pay tax on their ratable share of tax attributes. c. LLCs are required to pay Income taxes at both the entity level and the member level. d. None of the above

b. Partnerships do not pay taxes, Partners do. So each member will pay tax on their ratable share of tax attributes.

The source of warranty law is a. The Consumer Protection Act b. The Uniform Commercial Code c. The Truth in Lending Act d. FTC Regulations

b. The Uniform Commercial Code

Kameron, Candice and Leo were members of an LLC, Printing Unlimited, LLC (PU). They leased a digital printing press for their company. Press Sales, Incorporated (PSI), the company that manufactured and leased the printing press to them, required personal guarantees from each of them as a requisite leasing the press. What will be required of Kameron, Candice and Leo? a. They must pledge to pay PSI first out of PU assets. b. They must guarantee to make good faith efforts to repay the debt when due. c. They must pledge personal assets to guarantee the payment obligations of PU. d. Nothing, as a personal guarantee has no legal effect on an LLC because it is a limited liability entity.

b. They must guarantee to make good faith efforts to repay the debt when due.

Ronald was a real estate developer who purchased land in Manhattan for $20 million to build a skyscraper. After the purchase, the city passed a new zoning ordinance preventing the building of all new developments for environmental purposes. Ronald now has no legitimate commercial use of the property anymore and it is essentially worthless. However, Ronald still had full title to the property. Under these circumstances, if Ronald sues the city for his losses, he will a. lose because this is not a taking as he still owns the property. b. win because cities must always compensate owners for regulations and ordinances that affect their property. c. win because the regulation depleted all economic value from his property d. lose because there was a legitimate environmental purpose for the regulation.

c. win because the regulation depleted all economic value from his property

Daniella, Annabella, Cory, Roger and Cletus have decided to go into the real estate business to acquire land, build an apartment building rent it out and then sell it. Daniella and Cletus are the general partners who each own 10% of the limited partnership interests. Annabella a limited partner own 30% of the limited partnership, Cory owns 35% of the limited partnership and Roger owns 15% of the limited partnership. The dissolution provisions of the limited partnership agreement require that dissolution requires the Unanimous vote of the general partners and a majority in interest (51%) of the Limited Partners. Who must vote for dissolution in order for the limited partnership to dissolve? a. Daniella, Cletus Roger and Annabella b. Daniella, Cory, Annabella and Roger c. Roger, Cletus, Annabella and Daniella d. Daniella, Cletus, Cory and Annabella.

d. Daniella, Cletus, Cory and Annabella.

Sophia is renting a home from Roberto. There is no written lease, and the agreement is that Sophia will pay rent on the first of every month. Either party may terminate the agreement with 30 days' notice. Sophia has a a. Easement by Grant b. Tenancy for Years c. Life estate. d. Periodic Tenancy

d. Periodic Tenancy

The Superfund law follows which approaches to the cleanup of hazardous waste? a. Remedial and preservation b. Removal and prosecution c. Prosecution and remedial d. Removal and remedial

d. Removal and remedial

Dave is interested in becoming a shareholder in a closely held domestic corporation. Which of the following is not typically required a. The Directors of the Corporation must approve Dave's Subscription Agreement b. The Directors of the Corporation must accept his consideration c. The Directors of the Corporation must issue him shares d. The Directors of the Corporation must appoint Dave to one or more officer positions in the Corporation

d. The Directors of the Corporation must appoint Dave to one or more officer positions in the Corporation

Sneaky Sales Retailing advertised a bicycle for a 40 percent sale price of $449 but when customers came in for the sale, the sales representatives told customers the advertised bike was on back order, and always encouraged them to purchase a $799 bicycle. This is known as a. predatory pricing. b. a violation of the implied warranty of merchantability. c. Magnuson-Moss violation. d. a bait-and-switch

d. a bait-and-switch

All of the following are primary functions of federal agencies except a. policymaking. b. enforcement. c. rulemaking. d. constitution-interpreting.

d. constitution-interpreting.

Ian was a shareholder of National Corporation (NC), a publicly traded corporation. He brought a lawsuit against Tenielle, the president of NC, in the name of NC itself. Ian is alleging that Tenielle breached her duty of loyalty to NC. This is known as a/an a. class action lawsuit. b. shareholder's direction action. c. limited director liability lawsuit. d. derivative action.

d. derivative action.

The SEC's powers include all of the following except the power to a. investigate potential violations of securities laws. b. issue a cease and desist order c. initiate criminal charges against a company that has violated securities laws. d. establish new federal agencies for the prosecution of securities law violations.

d. establish new federal agencies for the prosecution of securities law violations.

Geoff and Matilda formed an LLC. Their LLC will be most likely be treated as a __________ for tax purposes. a. hybrid entity b. corporate tax entity c. nonprofit organization d. pass-through entity

d. pass-through entity

The SEC-prescribed document that is intended to give investors a realistic view of the security issuer's risk factors, financial position, financial statements, business and disclosures is known as the a. letter of intent. b. comfort letter. c. safe harbor document. d. prospectus.

d. prospectus.

Environmental protections in the United States are primarily based on a. regulations borrowed from the British system. b. the U.S. Constitution. c. the concept of utilitarian ethics d. the common law doctrine of nuisance.

d. the common law doctrine of nuisance.