Final BLAW Quiz 6

A plaintiff would have less flexibility making a claim under false and deceptive than she would making a claim under common law.

false

The Privacy Act of 1974 limits the collection and release of certain kinds of information by state governments.

false

The following example is a result of a trade regulation rule:

"Do Not Call" list

The ______ regulates transfers of securities after the initial sale. A. Securities Exchange Act of 1934 B. Sherman Antitrust Act of 1890 C. Sarbanes-Oxley Act of 2002 D. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 E. Securities Act of 1933

A

According to the Securities Act of 1933, which of the following is illegal during the waiting period?

Selling securities subject to the act

______ are brief announcements identifying the security and stating its price, by whom orders will be executed, and from whom a prospectus may be obtained. A. Tombstone ads B. Institutional ads C. Coupon ads D. Adjunct ads E. Overlay ads

A

The Video Privacy Protection Act prevents the disclosure of personally identifiable information concerning video rentals and includes a right of civil action with a minimum liquidated damages provision of ________.

A) $2,500

________ are brief announcements identifying the security and stating its price, by whom orders will be executed, and from whom a prospectus may be obtained.

A) Tombstone ads

Which of the following statements is true of short-swing profits?

Short-swing profits refer to those profits that have been made within a six-month time period.

According to the Securities Act of 1933, an issuer of securities who complies with the federal law must prepare a(n) A. issuer's statement. B. registration statement. C. licensing agreement. D. statute of limitations. E. secured promissory note.

B

According to the Securities Act of 1933, a(n) ______ is the individual or business organization offering a security for sale to the public. A. seller B. controlling person C. issuer D. underwriter E. financial sponsor

C

According to the Securities Act of 1933, which of the following is illegal during the waiting period? A. Soliciting buyers for a company's securities B. Receiving offers to buy a company's securities C. Selling securities subject to the act D. Soliciting through the use of a summary prospectus

C

A prospectus is filed during the A. prefiling period. B. waiting period. C. pre-effective period. D. posteffective period. E. elimination period.

D

A(n) ______ is a person who learns of nonpublic information from an insider, and is generally viewed as a temporary insider. A. underwriter B. controlling person C. issuer D. tippee E. dealer

D

Which of the following statements is true of creating liabilities under Section 18? A. There is a liability under section 18 for simple negligence. B. The plaintiff in a Section 18 case must prove reliance on the false or misleading filing of documents. C. Inaccuracy of filing is sufficient to impose liability under Section 18. D. The defendant's good faith is considered a defense under Section 18. E. Freedom from fraud is an invalid defense under an action based on Section 18.

D

The ________ provides the right to dispute information on credit reports and allows consumers to obtain a free credit report each year.

D) Fair and Accurate Credit Transactions Act

______ refers to the intent of a defendant-seller to deceive or mislead. A. Handhabend B. Double jeopardy C. Per minas D. Mens rea E. Scienter

E

Which of the following statements is true of a prospectus?

E) It contains financial information related to the issuer and controlling persons.

1. Under the 1933 Act, the basic period of the statute of limitations starts to run even before the discovery of the untrue statement or omission. TRUE OR FALSE

FALSE

10. The information contained in a prospectus is completely different from that contained in a registration statement. TRUE OR FALSE

FALSE

3. A defrauding seller usually benefits from an increase in the value of the securities. TRUE OR FALSE

FALSE

Infro Inc. is a major lender. It plans to include the zip codes of its customers as a major factor when offering loans. This allows Infro to reduce the amount of risk it takes by not providing loans in certain areas where property values are low. In this case, which of the following statements is true?

If Infro goes through with its decision, it is engaging in redlining.

Which of the following statements is true of the criminal liability imposed as per the Securities Act of 1934?

Individuals guilty of securities fraud may face a prison sentence of up to 25 years.

Which of the following statements is true of the Truth-in-Lending Simplification Act?

It restricts statutory penalties to failures to disclose credit terms that are of material importance in credit comparisons.

The federal law that establishes rules for federal trademark registration and enforcement and also prohibits false or misleading advertising is ______________.

The Lanham Act

Which of the following statements is true of creating liabilities under Section 18?

The defendant's good faith is considered a defense under Section 18.

The Consumer Financial Protection Bureau's authority applies to

banks that extend credit loans.

In the context of false advertising laws, state law

may allow for private lawsuits in addition to government enforcement, which is an option not available under the Federal Trade Commission Act.

For violations of the Fair Debt Collection Practices Act, in the absence of actual damages, the court may still order a collector to pay a debtor up to ______.

$1,000

The Video Privacy Protection Act prevents the disclosure of personally identifiable information concerning video rentals and includes a right of civil action with a minimum liquidated damages provision of ______.

$2,500

The buyer's damages of a defrauded purchaser of securities A. are measured at the time of purchase. B. include a punitive amount to discourage further fraud. C. are measured at the time when the fraud is discovered. D. are considered sunk costs and irrecoverable. E. include speculative damages.

A

The process of registration created by the Uniform Securities Act is known as A. registration by coordination. B. registration by notification. C. registration by qualification. D. registration by pronouncement. E. registration by announcement.

A

Tombstone ads refer to A. solicitations made during the waiting period. B. notices filed during the posteffective period announcing that the sale of securities has ended. C. announcements issued by the Securities and Exchange Commission (SEC) warning potential investors that a company is being investigated for fraud. D. feedback from the Securities and Exchange Commission (SEC) requiring additional information or a clarification of supplied information needed to complete a filed registration statement. E. statements that are required to be filled with the Securities and Exchange Commission (SEC).

A

Which of the following is a major provision of the State blue sky laws? A. They impose another level of securities regulations and govern interstate securities transactions that are beyond federal laws. B. They relax some of the regulatory burden for investments in smaller businesses or start-ups. C. They provide protection of whistleblowers who reveal fraud. D. They reformed the Federal Reserve. E. They created the Public Company Accounting Oversight Board.

A

Which of the following statements is true of a seller? A. It refers to anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur. B. It refers to the individual or business organization offering a security for sale to the public. C. It refers to anyone who prepares the registration statement and prospectus for securities involved in a sale. D. It refers to a person who is in possession of an article and is responsible for returning the article safely to the owner once the contract is fulfilled. E. It refers to anyone who controls or is controlled by the issuer, such as a major stockholder of a corporation.

A

Which of the following statements is true of the Securities Enforcement Remedies Act? A. An individual found to have violated the securities laws may be prohibited by the court from serving as an officer or director of a business organization. B. Civil fines of up to $700,000 per organization and $500,000 per individual may be imposed and collected by the courts. C. It changes membership requirements of corporate audit committees. D. It requires proof of criminal violation for individual and organizational fines to be imposed. E. It refrains from imposing liability on a theory of fraud on any person who shall make or cause to be made any false or misleading statements.

A

An insider is any person who is a ________of the issuer of the security.

A) director or an officer

13. Which of the following statements is true of a seller?

A. It refers to anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur.

11. Which of the following is a major provision of the State blue sky laws?

A. They impose another level of securities regulations and govern interstate securities transactions that are beyond federal laws.

According to the Securities Act of 1933, which of the following is considered legal during the prefiling period? A. selling a covered security B. engaging in negotiations and agreements with underwriters C. offering to sell a covered security D. offering to buy a covered security E. sellers soliciting offers for later acceptance

B

An insider is any person who owns more than ______ percent of any security. A. 65 B. 10 C. 15 D. 20 E. 50

B

In the registration process, the waiting period typically lasts A. 10 days. B. 20 days. C. 30 days. D. 45 days. E. 60 days.

B

The Sarbanes-Oxley Act requires that information pertaining to an insider's transaction be filed A. by mail, postmarked within five business days of the transaction. B. electronically within two business days of the transaction. C. by any effective means within 10 business days of the transaction. D. by any effective means within 10 business days after the close of the calendar month in which the transaction occurred. E. electronically on the day of the transaction.

B

Under Rule 10b-5, plaintiffs are entitled to A. contemptuous damages. B. consequential damages. C. aggravated damages. D. restitutionary damages. E. punitive damages.

B

Which of the following Acts created the Securities and Exchange Commission? A. the Securities Act of 1933 B. the Securities Exchange Act of 1934 C. the Securities Enforcement Remedies Act of 1990 D. the Sarbanes-Oxley Act of 2002 E. the Insider Trading and Securities Fraud Enforcement Act of 1988

B

Which of the following statements is true of the Private Securities Litigation Reform Act (PSLRA)? A. It was enacted by the Congress to eliminate the fraud-on-the-market presumption. B. It is used by the Congress to limit the amount of damages private plaintiffs can recover and restrict attorney fees. C. It usually fails to give provisions for requirements for the appointment of lead plaintiffs in securities class-action cases. D. It requires that private plaintiffs who suffered injury could maintain private causes of action against third parties not directly responsible for a securities law violation. E. It mandated that the Federal Trade Commission could pursue claims against third parties that are indirectly responsible for a securities law violation.

B

Which of the following statements is true of the statute of limitations? A. The defense mechanism is inapplicable in cases of civil liability. B. The basic period for the statute of limitation is one year. C. The statute of limitation begins even before the discovery of untrue statement or omission. D. A suit may be brought in any event even after five years of sale. E. The statute of limitation excludes reasonable diligence in discovering untrue statement or omission.

B

Which of the following statements is true of the various activities occurring during the registration process of securities in a sale? A. A registration becomes ineffective and invalid immediately at the expiry of the waiting period. B. Contracts to buy and sell securities are finalized during the posteffective period. C. It becomes legal to sell a security subject to the act during the waiting period. D. During the prefiling period, offers to sell and buy securities are permitted as per the Securities Act of 1933. E. Tombstone ads are made after the end of the posteffective period.

B

Which of the following statements is true of the Children's Online Privacy Protection Act?

B) It applies to any company knowingly collecting information online from children 13 and under, even is that is not the primary purpose of the website.

According to the Securities Act of 1933, an issuer of securities who complies with the federal law must prepare a(n)

B) registration statement.

Which of the following statements is true of the various activities occurring during the registration process of securities in a sale?

B. Contracts to buy and sell securities are finalized during the posteffective period.

The Securities and Exchange Commission's (SEC) right to conduct investigations is based on its A. quasi-executive power. B. federal power. C. quasi-judicial power. D. constitutional right. E. quasi-legislative power.

C

Under the 1934 Act, a business organization found guilty of filing false or misleading documents with the Securities and Exchange Commission (SEC) may be fined up to A. $80,000,000. B. $55,000,000. C. $25,000,000. D. $50,000,000. E. $70,000,000.

C

Which of the following sections of the Securities Act of 1933 deals with imposing liability on fraudulent interstate transactions? A. Section 12 B. Section 11 C. Section 17 D. Section 4 E. Section 16

C

Which of the following statements is true of blue sky laws? A. The federal laws preempt the existence of state blue sky laws. B. The method of regulation is uniform and same across all the states. C. The laws can apply to securities subject to federal laws as well as to those securities exempt from the federal statutes. D. The laws are commonly known as the antifraud laws as per the Securities Act of 1934. E. The laws were established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

C

Which of the following statements is true of short-swing profits? A. Short-swing profits refer to any profits made by insiders who buy and sell company stock within a three-month time period. B. The short-swing profits rule of Section 16 depends on misuse of information. C. Short-swing profits refer to those profits that have been made within a six-month time period. D. The short-swing profits policy takes into consideration order of purchase and sale in determining its legality. E. Short-swing profits are calculated on the highest price in and the lowest price out during any fiscal period.

C

Which of the following statements is true of the criminal liability imposed as per the Securities Act of 1934? A. Criminal liability is inapplicable in cases of false material statements in applications or reports. B. Individuals found guilty of filing misleading documents are subject to maximum two years of imprisonment. C. Individuals guilty of securities fraud may face a prison sentence of up to 25 years. D. Business organizations found guilty of filing misleading documents have relaxed laws in comparison to individuals. E. Regulating and imposing liabilities on trading on nonpublic information is beyond the scope of the act.

C

______ of the Sarbanes-Oxley Act requires CEOs and CFOs to certify the accuracy of the quarterly and annual financial statements filed with the Securities Exchange Commission. A. Section 906 B. Section 1107 C. Section 302 D. Section 802 E. Section 404

C

The damages of a defrauded purchaser of securities________

C) are actual out-of-pocket losses.

Penultimate manufactures luxury pens. One of its new products, the Green Dream Scriber, is advertised to be 100% biodegradable unlike its competitors' pens due to a unique case and special ink compound that makes the pen biodegradable. After receiving complaints of fraud, the Federal Trade Commission (FTC) determines that the pen is made from materials similar to that found in most luxury pens and is not biodegradable. The FTC orders Penultimate to run an ad admitting that its advertisements were misleading and remove the untrue information from its advertisements. In this scenario, which of the following remedies is used by the FTC?

C) corrective advertising

According to the Securities Act of 1933, an individual who participates in the original distribution of securities by selling such securities for the issuer or by guaranteeing their sale is referred to as the A. seller. B. controlling person. C. issuer. D. underwriter. E. bailee.

D

According to the Securities and Exchange Commission (SEC), a person should be considered to be a temporary insider if that person conveys nonpublic information that was to have been kept confidential. This philosophy has become known as the A. quasi-insider theory. B. implied-insider theory. C. temporary insider theory. D. misappropriation theory. E. mosaic theory.

D

After the registration statement is filed, a ______ commences. A. deferring period B. prefiling period C. posteffective period D. waiting period E. regulation period

D

Due diligence defense requires that an expert prove that a reasonable investigation of the financial statements of the issuer and ______ was conducted. A. sellers B. bailees C. underwriters D. controlling persons E. guarantors

D

Prohibitions against insiders from engaging in short-swing profits are enforced by the A. Securities and Exchange Commission (SEC). B. Federal Trade Commission (FTC). C. Federal Reserve. D. issuer of the security or by a person who owns a security of the issuer. E. executive officers, accounting officers, and chief financial officers.

D

Section 10(b) and Rule 10b-5 are usually referred to as the ______ provisions of the 1934 Act. A. civil B. discretionary C. general duties D. antifraud E. rulemaking

D

The Financial Stability Oversight Council was established by the A. Securities Exchange Act of 1934. B. Sherman Antitrust Act of 1890. C. Sarbanes-Oxley Act of 2002. D. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. E. Securities Act of 1933.

D

The Insider Trading and Securities Fraud Enforcement Act of 1988 provides that suits alleging illegal use of nonpublic information may be filed up to a maximum period of ______ years after the wrongful transaction. A. six B. ten C. eight D. five E. seven

D

The Public Company Accounting Oversight Board was created by the A. Securities Act of 1933. B. Securities Exchange Act of 1934. C. Security Fraud Enforcement Act. D. Sarbanes-Oxley Act. E. Sherman Act.

D

The Securities and Exchange Commission's (SEC's) adoption of rules and regulations relating to financial and other information furnished to the Commission comes under its ______ power. A. quasi-judicial B. federal C. quasi-executive D. quasi-legislative E. bargaining

D

The civil penalty provided by the Insider Trading and Securities Fraud Enforcement Act of 1988 for profits gained with nonpublic information is A. two years imprisonment. B. return of illegal profits gained. C. a recovery of double damages. D. three times the profits gained. E. a release of an equity court summons.

D

Under the 1934 Act, an individual found guilty of filing false or misleading documents with the Securities and Exchange Commission (SEC) may be imprisoned up to A. 5 years. B. 10 years. C. 15 years. D. 20 years. E. 25 years.

D

One limitation of the Electronic Communications Privacy Act is that ________

D) it allows for the interception of business communications on an employer's equipment.

The ______, passed by the European Parliament in 1995, mandates that companies may collect personal information only with consent, keep it only as long as necessary, and transfer to third parties only with permission.

Data Protection Directive

A major stockholder of a corporation is most likely to be a(n) ______ in the initial sale of securities who also has power over the issuer in such sales. A. seller B. bailee C. underwriter D. guarantor E. controlling person

E

According to the Sarbanes-Oxley Act, auditors are required to preserve audit records for a period of A. three years. B. five years. C. two years. D. nine years. E. seven years.

E

Benefit of the bargain refers to the measure of damages awarded to the buyer which is A. the amount that allows the injured party to revive the economic position held by him or her when the contract was made. B. the out-of-pocket expense such as the legal fees incurred by the plaintiff. C. the value of the security that was represented to be worth in the market. D. the combination of the out-of-pocket expenses and what the security was represented to be worth in the market. E. the difference between what he or she paid and what the security was represented to be worth.

E

Registration by notification A. is required by those issuers who lack a proven record and who are beyond the scope of Securities Act of 1933. B. refers to documents filed with the Securities & Exchange Commission (SEC) by a privately held company, declaring its intent to offer shares of its stock to the general public. C. is required for those issuers of securities who must register with the Securities and Exchange Commission (SEC) and the duplicate documents are filed with the state's administrative agency. D. refers to the quality certification process in which an independent and accredited quality auditor conducts an on-site audit of a firm. E. allows issuers to offer securities for sale automatically after a stated time period expire unless the administrative agency takes action to prevent the offering.

E

The Sarbanes-Oxley Act provides that whenever there is a restatement of the company's financial condition, then the executives A. would be morally rather than legally culpable for the bonuses paid as a result of the incorrect financial statements. B. have to forfeit their salaries to cover for the amount of the bonuses paid to them on the basis of incorrect financial statements. C. would not be legally bound to return any bonuses paid as a result of the incorrect financial statements. D. must return the interest on any incentives payments as a result of the incorrect financial statements. E. must return any bonuses paid as a result of the incorrect financial statements.

E

The ______ is a disclosure law which makes it illegal to use mails or any other means of interstate communication or transportation to sell securities without disclosing certain financial information to potential investors. A. Securities Exchange Act of 1934 B. Sherman Antitrust Act of 1890 C. Sarbanes-Oxley Act of 2002 D. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 E. Securities Act of 1933

E

The members of the Public Company Accounting Oversight Board are appointed by the A. president. B. senate. C. Federal Trade Commission. D. congress. E. Securities and Exchange Commission.

E

The registration statement to be filed with the Securities and Exchange Commission (SEC) includes A. statements which allow the holder to buy securities at a specified price within a designated time limit. B. a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. C. statements that show ownership of a bond, stock or other security. D. an annual report on the activities of an organization distributed among its stakeholders. E. a detailed disclosure of financial information about the issuer and the controlling individuals involved in the offering of securities for sale to the public.

E

Which of the following statements is true of the Sarbanes-Oxley Act? A. The act can apply to international companies if they are registered with the Securities and Exchange Commission (SEC). B. The act focuses on lessening the responsibilities of the auditors. C. The act requires the auditors to have a close working relationship with the company's CFO, accounting staff, and other company officials. D. The act is inapplicable to public companies. E. The act mandates the certification of internal financial controls.

E

Which of the following statements is true of the Securities Exchange Act of 1934? A. The Act makes it legal to sell a security on a national exchange. B. The registration under the 1934 Act is the same as under the 1933 Act. C. The registration process excludes filing of prescribed forms with the Securities Exchange Commission. D. The Act deals with original offerings of securities instead of regulating transfers of securities after the initial sale. E. The Act requires brokers and dealers to keep detailed records of their activities and filing of annual reports with the Securities Exchange Commission.

E

A major stockholder of a corporation is most likely to be a(n) ________ in the initial sale of securities who also has power over the issuer in such sales.

E) controlling person

12. The registration statement to be filed with the Securities and Exchange Commission (SEC) includes

E. a detailed disclosure of financial information about the issuer and the controlling individuals involved in the offering of securities for sale to the public.

DrakeAuto Corp. is an automobile dealer that offers flexible payment plans for its customers. However, DrakeAuto requires its customers over 60 years of age to make the payment in full because "These people could die at any time." In this case, DrakeAuto violates the ______.

Equal Credit Opportunity Act

4. The Sarbanes-Oxley Act focuses on decreasing the independence of the auditors.TRUE OR FALSE

FALSE

5. The Sarbanes-Oxley Act limits personal loans from a company to its executives to one loan of no more than $10,000, amortized over five years, at a time. TRUE OR FALSE

FALSE

The __________ provides the right to dispute information on credit reports and allows consumers to obtain a free credit report each year.

Fair and Accurate Credit Transactions Act

The commissioners of the Federal Trade Commission are appointed by Congress and the budget is approved annually by the president.

False

The main purpose of the Federal Trade Commission is to find violators and punish them.

False

The _________________is the primary federal agency that protects consumers.

Federal Trade Commission

Which of the following statements is true of the Private Securities Litigation Reform Act (PSLRA)?

It is used by the Congress to limit the amount of damages private plaintiffs can recover and restrict attorney fees.

The ______ of 1974 places constraints on how certain kinds of information collected by the federal government can be used and limits those to whom the information may be released.

Privacy Act

2. A plaintiff in a Rule 10b-5 suit is required to prove damages in order to prevail. TRUE OR FALSE

TRUE

6. Securities laws are designed to give potential investors sufficient information so that they can make intelligent investment decisions based on factual information. TRUE OR FALSE

TRUE

7. The Securities and Exchange Commission has both quasi-legislative and quasi-judicial powers. TRUE OR FALSE

TRUE

8. The Securities Act of 1933 is a disclosure law with respect to the initial sale of securities to the public. TRUE OR FALSE

TRUE

9. In the context of providing untrue or misleading information to potential investors, proof of negligence will support an injunction.

TRUE

Which of the following statements is true of the Securities Exchange Act of 1934?

The Act requires brokers and dealers to keep detailed records of their activities and filing of annual reports with the Securities Exchange Commission.

The ______ requires that a lender disclose the finance charge, expressing it as an annual percentage rate, and specifies the methods for making this computation.

Truth-in-Lending Act

The buyer's damages of a defrauded purchaser of securities

are measured at the time of purchase.

Which of the following is not a typical role regulated by the Securities Act of 1933?

commissioner

Due diligence defense requires that an expert prove that a reasonable investigation of the financial statements of the issuer and ______ was conducted.

controlling persons

The court may prevent a debtor from discharging any debts if it finds that the debtor engaged in any of the following except __________

discharging debt in bankruptcy more than ten years ago.

The Sarbanes-Oxley Act requires that information pertaining to an insider's transaction be filed

electronically within two business days of the transaction.

According to the Securities Act of 1933, which of the following is considered legal during the prefiling period?

engaging in negotiations and agreements with underwriters

The Electronic Communications Privacy Act and Stored Communications Act protect all personally identifiable information.

false

The Fair Credit Reporting Act regulates credit reports on both consumers and businesses.

false

The Federal Trade Commission determines what is a deceptive ad using the point of view of an "experienced consumer".

false

The Securities Act of 1933 makes it illegal to use interstate transportation to sell securities without disclosing financial information to potential investors, but it is not illegal to use the interstate mail systems

false

Under a cease and desist order issued by the Bureau of Consumer Protection, a party consents to sign an order which restrains the promotional activity deemed offensive.

false

Among the costs frequently paid by debtors to creditors as a condition of the extension of credit, which of the following are included in the finance charge?

fees for appraisals

One limitation of the Electronic Communications Privacy Act is that ___________

it allows for the interception of business communications on an employer's equipment.

In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive the lowest priority?

one who is injured from a motor vehicle operated by a debtor while he was intoxicated

In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive highest priority?

spouse, former spouse, child, or guardian with claims for domestic support

Benefit of the bargain refers to the measure of damages awarded to the buyer which is

the difference between what he or she paid and what the security was represented to be worth.

The civil penalty provided by the Insider Trading and Securities Fraud Enforcement Act of 1988 for profits gained with nonpublic information is

three times the profits gained.

______ ensures fair competition by preventing those who would deceive consumers from diverting trade from those who compete honestly.

trade practice regulation

A prospectus must conform to the statutory requirements.

true

Advisory opinions are formal opinions issued by the Federal Trade Commission on issues such as whether a proposed practice is unfair or deceptive.

true

In a bankruptcy proceeding, an involuntary petition is one filed by one or more creditors of the debtor.

true

Registering the initial sale of securities involves three time periods, which are the prefiling period, the waiting period, and the posteffective period.

true

Securities laws are designed to give potential investors sufficient information so that they can make intelligent investment decisions based on factual information.

true

The Federal Trade Commission is the primary federal agency that protects consumers.

true

The Federal Trade Commission promotes free and fair competition by enforcing antitrust laws.

true

The trustee in bankruptcy has broad powers over the estate of a debtor.

true