business law

The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal

trade secrets.

In accordance with the Federal Register Act of 1935,

A three-part Federal Register system was established.

The SEC's antifraud Rule 10b-5 prohibits trading on the basis of inside information of a business corporation's stock by

Anyone who bases his or her trading activities on the inside information.

Portions of the requirements under the Clean Water Act (CWA) can be viewed as technology forcing, i.e., requirements that force industry to implement or design new or innovative techniques for reducing pollutant discharges. This concept is best reflected in the CWA's requirement that certain point sources use the best

Available technology economically achievable (BAT).

A person who violates the Clean Water Act may be subject to

Civil and criminal liability.

Basil read an advertisement in the newspaper for a sale of "Major" stereos (a very well-known and reputable brand) by Hoodwink Discounters, a large chain distributor of electronics. Basil bought a stereo, but when he got home, he discovered it was a "Magor" brand, which looked just like the "Major" brand. Basil returned to Hoodwink but was told that the store had no more "Majors" and that "Magor" was essentially the same. It turned out that "Magor" was manufactured by Hoodwink. Basil could not obtain a refund. Which of the following is not a remedy available to Basil?

File a lawsuit seeking criminal penalties against Hoodwink.

Integral Corp. is subject to the reporting provisions of the Securities Exchange Act of 1934. For its current fiscal year, Integral filed the following with the SEC: quarterly reports, an annual report, and a periodic report listing newly appointed officers of the corporation. Integral did not notify the SEC of shareholder "short-swing" profits, report that a competitor made a tender offer to Integral's shareholders, and report changes in the price of its stock as sold on the New York Stock Exchange. Under the SEC reporting requirements, which of the following was Integral required to do?

File the periodic report listing newly appointed officers.

The Administrative Procedure Act sets forth two methods of rulemaking by administrative agencies: formal and informal. The major difference between these two methods is that

Formal rulemaking requires that the agency conduct formal hearings at which all its evidence justifying its proposed regulation is presented.

Which of the following is least likely to be considered a security under the securities act of 1933?

General partnership interests

Dick Grubar's appliance sales constitute less than .001% of the market. The marketplace has an abundance of retailers, and competition is vigorous. The manufacturers and the retailers dislike Grubar's price cutting. They jointly decided to boycott Grubar to limit his access to appliances and to drive him out of business. Grubar has commenced legal action against the various parties based upon a violation of the Sherman Act. He is seeking injunctive relief and damages. Under the circumstances,

Grubar is entitled to the relief requested because the facts indicate a per se violation.

James Fisk recently acquired Valiant Corporation by purchasing all of its outstanding stock pursuant to a tender offer. Fisk demanded and obtained the resignation of the existing board of directors and replaced it with his own slate of nominees. Under these circumstances,

If Valiant is listed on a national stock exchange, Fisk must file his tender offer with the SEC.

In reviewing agency action, courts practice considerable self-restraint except for which of the following reasons?

Lack of jurisdiction.

Mabel has a long history of using credit. She repaid most debts, but other times she defaulted on loans. With regard to credit information about Mabel that may have been collected by credit reporting agencies, which of the following statements is true?

Mabel is entitled to notification and the right to request information before an investigative report is prepared on her.

Spiffy Manufacturing plans to offer a new issue of voting stock to the investing public. Assuming that it properly takes advantage of an exemption from registration under the 1933 act, Spiffy

Must adhere to both federal antifraud rules and state law.

On May 1, Apel purchased 7% of Stork Corp.'s preferred stock traded on a national securities exchange. After the purchase, Apel owned 9% of the outstanding preferred stock. Stork is registered under the Securities Exchange Act of 1934. With respect to the purchase, Apel

Must file with the SEC, the issuer, and the national securities exchange information concerning the purpose of the acquisition.

Frey, Inc., intends to make a $2 million common stock offering under Rule 505 of Regulation D of the Securities Act of 1933. Frey

Must notify the SEC within 15 days after the first sale of the offering.

Danny Driver was going on a summer vacation with his family and leased a motor home from Nogo Enterprises. A provision in the form lease disclaimed all liability and warranties for (1) the condition of the motor home, (2) damages resulting from use of the motor home, and (3) any repairs needed on the motor home. Driver was required to initial this provision on the contract in addition to signing the entire agreement. One hundred miles out of town, the transmission broke. A repair shop estimated it would take 1 week to fix and cost $500. Driver left the motor home at the shop and made the trip by airplane. Nogo Enterprises now seeks to hold Driver liable for both the cost of the repairs and the rental of the motor home. Driver is

Not liable at all because the contract is unconscionable.

Judy entered into an agreement with Ralph to buy diamonds from him for $100,000. Which of the following will not prevent Ralph from enforcing the agreement?

Ralph said they were worth $100,000, but an appraisal obtained by Judy revealed the fair value to be $85,000.

Which of the following statements best describes how regulatory agencies of the U.S. government are restricted in the adoption of specific regulations?

Regulations must be consistent with standards established in the legislation that created the agency.

Gardener ordered an exotic plant by mail from an advertisement in a magazine. Seller received Gardener's check and order, but the plant was out of season. If the plant will not be available for shipment for 3 months but the seller deposited Gardener's check in its bank anyway,

Seller must promptly refund Gardener's check.

The Resource Conservation and Recovery Act (RCRA) defines hazardous waste broadly. The act generally applies to which of the following?

Solid waste.

Wanton Corporation, its president, and several other officers of the corporation have been found guilty of conspiring with its major competitor to fix prices. Which of the following sanctions would not be applicable under federal antitrust laws?

Suspension of the corporate right to engage in interstate commerce for not more than 1 year.

All of the following are criticisms generally made of federal regulatory agencies and policies except

Taxes imposed by agencies being too high.

Which one of the following is not exempted from federal antitrust regulation?

Telecommunications companies.

Which of the following statements regarding the Clean Water Act (CWA) is true?

The CWA seeks to restore and maintain the physical and biological integrity of the waters of the United States.

Expansion Corp. is seeking to obtain control of Resistance Corp. Expansion does not currently buy from, sell to, or compete with Resistance. Which of the following statements applies?

The acquisition is likely to be declared illegal if there will be reciprocal buying and there is a likelihood that other entrants into the market would be precluded.

Glick, Inc., and Yeats Corp. are large manufacturers of goods that are in substantial competition throughout the United States. Each has capital, surplus, and undivided profits aggregating more than $29,945,000. Over a 6-year period, Yeats acquired 46% of the outstanding stock of Glick. Yeats's current directors own stock in both corporations and are on the board of directors of each. Which of the following statements applies to the above situation?

The interlocking directorate is a clear violation of federal antitrust laws.

A person who desires to build a new major stationary source must first obtain a permit. Which of the following will not be a condition of obtaining such a permit in a state that must submit Part D of a state implementation plan?

The new source cannot be constructed in a "dirty air area."

Taso Limited Partnership intends to offer $400,000 of its limited partnership interests under Rule 504 of Regulation D of the Securities Act of 1933. These interests are registered under state law. Which of the following statements is true?

The resale of the limited partnership interests by a purchaser generally will not be restricted.

The authority of an agency to make law is typically determined by

The statute that created the agency.

Government Business Machines (GBM) has greater than an 80% share of the sales of computers to local and state governments. GBM requires all purchasers of its computers also to purchase its proprietary operating system, called GOS. Furthermore, GBM government contracts require all application software and peripherals to be purchased from GBM. Which of the following is a true statement about this tying arrangement?

The test of whether a tying arrangement is illegal is essentially the same under the Sherman Act and the Clayton Act.

The environmental impact statement (EIS) lies at the heart of the NEPA. Which of the following states a condition that must be present before a federal agency is required to prepare an EIS?

There must be a recommendation or report on a proposal for legislation or certain other "major" federal action.

Which of the following remedies is available against a real property owner to enforce the provisions of federal acts regulating air and water pollution?Citizen Suits against the Environmental Protection Agency to Enforce Compliance with the Laws/State Suits Against Violators/Citizen Suits Against Violators

Yes/Yes/Yes

Power Inc. and 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 per se violation of the Sherman Act.

A ship owned by ocean cruises inc. discharges some of the oil used in its engine into puget sound and onto the shores. Under the oil pollution act. this is most likely.

a violation

A proceeding in which an administrative law judge hears and decides issues that arise when an agency charges a person or a firm with an agency violation is

adjudication.

Delta Water Company is subject to a decision by the Environmental Protection Agency. Delta appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision

changed the agency's prior policy without justification.

Oil Industries Inc. and Petro Corporation are competing refineries situated on the Gulf coast. The two firms cooperate to obtain federal funds to build a levee that could protect their facilities from rising sea levels. With respect to antitrust law, this effort is

exempt from antitrust enforcement.

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.

The Financial Stability Oversight Council was created in response to a financial crisis to

identify and respond to emerging risks in the financial system.

To raise $120 million to expand operations, Primo Inc. makes a stock offering directly to sixty accredited investors and twenty sophisticated, but unaccredited investors. The firm plans to notify the SEC of sales. Under the Securities Act of 1933, this issue may qualify as an exempt transaction

if all of the investors are also given material information about the firm.

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates

no federal law.

An ad for Running Shoes Inc. states that its footwear is "The Winner's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

none of the choices.

Leo's application to Metro Bank for a credit card is denied on the basis of what Leo believes is an inaccurate credit report. Leo should

obtain his credit report and notify the reporting agency of inaccuracies.

The goal of securities regulation is to

prohibit deceptive and manipulative practices in the securities markets.

Solar Power Company wants to erect an array of solar panels on private land, for which a federal permit is required. For this action, an environmental impact statement is

required

Debt Equity Inc., and its officers, directors, and employees, buy and sell securities based on financial research and analysis. Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of securities involving

short-swing profits.

BioChem Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChem before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund is likely to impose on ChemCo

strict liability.

The credit department of Mega-Mart often calls Nora at work about an overdue bill over the objection of Nora's employer. This is a violation of

the Fair Debt Collection Practices Act.

With respect to antitrust violations, the Federal Trade Commission does not enforce

the Sherman Act.

Bee borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to

the car loan, the home repair loan, and the retail installment sale.

A constant tension between the desire for profits and productivity and the desire to protect the environment exists because

the costs of complying with environmental regulations are high.

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 Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of

the president.

Battery Corporation's production, distribution, and marketing methods are unique. Its capital value and size are greater than its competitors. A suit is filed against the firm, alleging the offense of monopolization. To determine whether Battery has monopoly power requires looking at

the relevant market.