Legal Environment Exam 4
Industrial Solvents Inc. averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine of
$30,000 per day.
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? Yes -State Suits Against Violators? Yes -Citizen Suits Against Violators? Yes
nuisance
A common law doctrine under which persons may be held liable for using their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property.
bureaucracy
A large organization that is structured hierarchically to carry out specific functions.
monopoly
A market in which there is a single seller or a very limited number of sellers.
Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), if land is found to be contaminated, which of the following parties would be least likely to be liable for cleanup costs?
A minority shareholder of the public corporation that owned the land.
potentially responsible party (PRP)
A party liable for the costs of cleaning up a hazardous-waste disposal site under the Comprehensive Environmental Response, Compensation, and Liability Act.
per se violations
A restraint of trade that is so anticompetitive that it is deemed inherently (per se) illegal.
SEC Rule 10b-5
A rule of the Securities and Exchange Commission that prohibits the commission of fraud in connection with the purchase or sale of any security.
Under the Clean Air Act, a major stationary source is
A source that directly emits 10 tons per year or more of sulphur dioxide.
mutual fund
A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio
In accordance with the Federal Register Act of 1935,
A three-part Federal Register system was established.
Adjudication is a quasi-judicial function performed by administrative agencies. Adjudicatory hearings resemble a trial and are conducted by an administrative law judge (ALJ). Regarding adjudicatory hearings, which of the following statements is true?
Adjudicatory hearings follow much less restrictive rules of evidence than trials in other courts.
Which one of the following forms of law is created when regulatory agencies issue regulations and enforcement procedures in accordance with statutes?
Administrative law.
bait-and-switch advertising
Advertising a product at an attractive price and then telling the consumer that the advertised product is not available or is of poor quality and encouraging her or him to purchase a more expensive item.
legislative rules
An administrative agency rule that carries the same weight as a congressionally enacted statute
Rey Corp.'s management intends to solicit proxies relating to its annual meeting at which directors will be elected. Rey is subject to the registration and reporting requirements of the Securities Exchange Act of 1934. As a result, Rey must furnish its shareholders with
An annual report containing its audited balance sheets for the 2 most recent years.
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).
Goop Foods, a maker of baby foods, was warned by the Food and Drug Administration (FDA) through written reprimands after an inspection of unsanitary conditions in its warehouses. The president of Goop was specifically provided with these letters. One year later, the FDA made another inspection of Goop's warehouses and discovered the problems had not been resolved at all. The FDA filed charges against Goop and the president under the Federal Food, Drug, and Cosmetic Act. Who can be held criminally liable under the act?
Both Goop and the president.
Pico Mirandola purchased a stereo for $400 with his credit card. At home, Pico discovered the stereo did not work properly. Pico
Can refuse to pay the credit card bill if he attempted in good faith to return the stereo or give the store an opportunity to correct the problem.
A person who violates the Clean Water Act may be subject to
Civil and criminal liability.
Which of the following actions should a business take to qualify for leniency if an environmental violation has been committed?
Conduct Environmental Audits? Yes Report Environmental Violations to the Government? Yes
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
Gertrude was receiving both alimony and child support, but her former husband had never held a job for a long period of time. Which of the following statements is true concerning Gertrude's application for credit with Dacy Department Store?
Dacy may consider the likelihood of Gertrude's receiving these payments based on her former husband's work record.
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.
An offering made under the provisions of Tier 1 of Regulation A of the Securities Act of 1933 requires that the issuer
File an offering circular with the SEC.
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.
Fresh Fruit Company has assets of less than $10 million and fewer than fifty shareholders. Gourmand Pastries Inc. has assets of more than $50 million and more than five hundred shareholders. The Securities Exchange Act of 1934 applies to
Gourmand Pastries only.
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 the exercise of its adjudicatory power, an administrative agency
Is required to observe procedural due process.
The Duplex Corporation has been charged by the U.S. Justice Department with an "attempt to monopolize" the duplex industry. In defending itself against such a charge, Duplex will prevail if it can establish that
It had no intent to monopolize the duplex industry.
The Flick Corp. manufactured almost exclusively a gizmo that was sold throughout the United States. Flick required all purchasers to take at least two other Flick products to obtain the gizmo over which it has almost complete market control. As a result of this plan, gross sales of the other items increased by an amount that was a substantial portion of the total market for those items. Which of the following best describes the legality of the above situation?
It is an illegal tying arrangement.
Integral Corp., with assets in excess of $4 million, has issued common and preferred stock and has 350 shareholders. Its stock is sold on the New York Stock Exchange. Under the Securities Exchange Act of 1934, Integral must be registered with the SEC because
Its shares are listed on a national stock exchange.
In reviewing agency action, courts practice considerable self-restraint except for which of the following reasons?
Lack of jurisdiction.
antitrust laws
Laws protecting commerce from unlawful restraints and anticompetitive practices
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.
Dee is the owner of 12% of the shares of common stock of D&M Corporation that she acquired in Year 1. She is the treasurer and a director of D&M. The corporation registered its securities in Year 2 and made a public offering pursuant to the Securities Act of 1933. If Dee decides to sell part of her holdings in Year 9, the shares
Must be registered if Dee sells 50% of her shares through her broker to the public.
Able Corporation was charged with a violation of the Federal Trade Commission Act. Harp, an FTC examiner, concluded that Able had violated the Act and made adverse determinations on several issues. Able believes Harp has been arbitrary in several of the determinations and clearly incorrect in others. Able
Must exhaust the available administrative remedies before relief in court can be sought.
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.
counteradvertising
New advertising that is undertaken to correct earlier false claims that were made about a product.
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.
Gould Machinery builds bulldozers. Prior to this year, it sold a substantial amount of equipment to Mace Contractors on credit. Mace recently went into bankruptcy. To protect its investment, Gould took over Mace. Erhart Contractors now complains that the acquisition harms its business, alleging that its business would have improved had Gould not entered the market as a competitor. Erhart can
Not recover damages under the antitrust laws.
Under the NEPA, if a federal agency determines that an EIS is not necessary, it must nonetheless
Prepare a finding of no significant impact (FONSI) setting forth the reasons why the proposed action does not require an EIS.
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.
ABC Co. manufactures popular skin care products. It has used the term "baby oil" with its products for so long that much of the public associates the term "baby oil" with ABC products. SLZ Co. comes out with a new skin care product and uses the term "baby oil" on it. Which of the following is true
SLZ can be held liable even without intent to deceive and without a showing of damages.
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.
The Administrative Procedure Act (APA) was enacted in 1946 as a response to criticism of the discretion and power that Congress had granted to administrative agencies. Its main function is to
Specify the procedures agencies must follow in making rules and establish standards for judicial review of agency action.
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.
Pratt Co. manufactures and sells clocks. Its best-selling item is a grandfather clock. Taylor Co. purchased 100 of the clocks from Pratt at $99 each. Taylor discovered that Stewart, one of its competitors, had purchased the same clock from Pratt at $94 per clock. In the event the issue is litigated,
Taylor has a presumption in its favor that it has been harmed by price discrimination.
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.
The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of
The President.
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.
Super Sports, Inc., sells branded sporting goods and equipment throughout the United States. It sells to wholesalers, jobbers, and retailers who in turn sell the goods to their respective customers. The wholesalers and jobbers, who do not sell at retail, are charged lower prices than retailers but are required to purchase in larger quantities than retailers with the cost savings inherent in such purchases accounting for the lower prices. The retailers are all charged the same prices but receive discounts for quantity purchases based exclusively upon the cost savings resulting from such quantity purchases. Girard sues Super alleging an illegal price discrimination. Which defense will be most likely to prevail?
The discounts are functional.
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 $41,034,000. 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."
A requirement of a private action to recover damages for violation of the registration requirements of the Securities Act of 1933 is that
The plaintiff acquired the securities in question.
monopolization
The possession of monopoly power in the relevant market and the willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.
rulemaking
The process by which an administrative agency formally adopts a new regulation or amends an old one
Which of the following statements concerning the prospectus required by the Securities Act of 1933 is true?
The prospectus is a part of the registration statement.
Which of the following facts will result in an offering of securities being exempt from registration under the Securities Act of 1933?
The sale or offer to sell the securities is made by a person other than an issuer, underwriter, or dealer.
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.
Gritney, Inc., manufactures and sells gizmos in competition with about four other firms in the United States. It sells about 90% of the gizmos sold in the Midwest, but only about 10% nationally. Gritney will probably be found
To have monopoly power, if the relevant market is determined to be the Midwest.
Which one of the following examples of corporate behavior would most clearly represent a violation of the Sherman Act?
Two firms in the same industry agree in a telephone conversation to submit identical bids on a government contract.
Tina Timely purchased a watch for which the written information contained an explanation that it was a full warranty. Shortly thereafter, the watch stopped working. Timely went back to the store where she purchased the watch and requested that it be exchanged for a new one. The store explained it could not be exchanged, but the manufacturer would repair it under the warranty for a $3.00 service charge. What are Timely's rights?
Under a full warranty, Timely may not be assessed a service charge.
Resale price maintenance is an example of
Vertical price fixing.
Dan bought a vacation home in the mountains of North Carolina. One day as he was sitting on the porch of his vacation home, Dan saw a stream of gray liquid bubbling up from an opening in his front yard. Dan immediately notified the EPA, which, after extensive examination, informed him that hazardous substances (within the meaning of CERCLA) had been previously buried deep beneath his house and a shift in the rock formation underlying his house caused a barrel to rupture, releasing its contents. Under CERCLA, Dan
Will not be liable, despite the act's broad liability, if he is able to avail himself of the so-called innocent landowner's defense.
Just before Christmas, Willy received an unordered silk scarf in the mail from a manufacturer. Several days later, the scarf was followed by a bill and letter explaining that it was sent for Willy's convenience to use as a Christmas gift. Which of the following statements is correct concerning Willy's liability for payment?
Willy may keep and use the scarf without an obligation to pay for it.
The best description of an administrative agency is that it is a governmental board, commission, officer, bureau, or department
With the power to make rules and adjudicate disputes affecting private rights.
A television commercial depicts a set of false teeth dunked in a glass of bubbly water and then pulled out shining clean and white. In reality, the set of false teeth is not the same stained set that was put into the bubbly water. Is this commercial deceptive?
Yes, because the public is being misled as to the seller's objective proof of a product claim.
Market Data Corporation is required to file a registration statement with the Securities and Exchange Commission. This statement must contain
a description of securities being offered for sale.
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
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.
The Environmental Protection Agency (EPA) wants Waste Disposal Company to produce certain records for review. The EPA can gain access to the records through
a subpoena.
Mountain Crest Inc. makes and distributes its branded products to authorized dealers. To prevent price-cutting by dealers in direct competition, the firm imposes limits on where each dealer can sell the products. This is
a territorial restriction.
A ship owned by Ocean Cruises Inc. discharges some of the oil used in its engines into Puget Sound and onto the shore. Under the Oil Pollution Act, this is most likely
a violation.
Without a permit from the U.S. Army Corps of Engineers, Condos Corporation fills a wetlands area that it owns in preparation for the construction of a housing complex. Under the Clean Water 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.
The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they
agreed to work together to control the price of domestic steel
Congress enacts a new air quality statute. The enforcement of this and other federal environmental legislation relies on
all levels of government and private citizens.
Closed meetings of the U.S. Bureau of Land Management, a federal administrative agency, are permitted when
all of the choices -the subject of the meeting concerns accusing a person of a crime -the subject of the meeting involves matters relating to future rulemaking. -open meetings would frustrate the implementation of future actions.
Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. This is
bait-and-switch advertising.
Bev is the chief executive officer of Chef Cafés Inc., which is required to file certain financial reports with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Bev must
certify that the reports are complete and accurate.
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.
Riverside Glass Company operates a manufacturing plant on Spawn River. Discharging pollutants from the plant into the river can result in
civil penalties and criminal penalties.
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.
Value Loan Company extends credit to consumers. Value Loan applies a variety of requirements to determine applicants' qualifications for credit, the amount, the interest rate, and other terms. Under the Equal Credit Opportunity Act, the lender cannot base its credit decisions on an applicant's
gender
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.
Under a contract, Oil Shale Corporation forbids Petro Inc., a wholesale buyer of Oil Shale's products, to purchase products from the seller's competitors. This is prohibited
if its effect is to substantially lessen competition.
Two Chinese firms, Wong Ltd. and Xiang Ltd., engage in a conspiracy to control the distribution of certain goods in global markets. This may violate U.S. antitrust laws
if the conspiracy has a substantial effect on U.S. commerce only.
To notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal
in the Federal Register.
Disposal Company operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site, the company sells the property to Eager Developers Inc. If there is a release, the seller is most likely
liable.
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 -counteradvertising order. -a cease-and-desist order -a settlement.
Chris, a coder for Drones Inc., learns of undisclosed company plans to market a new, smart drone. Chris buys 10,000 shares of the firm's stock. If Chris is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of the stock was
not yet public.
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.
Media Report seeks information about well-known businesspersons under the Freedom of Information Act. To obtain the information, Media Report must
reasonably describe the information.
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.
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
ship orders within the time promised in its ads.
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.
Quik Mart sells groceries. Rite Price sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is
the Food and Drug Administration.
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.
Spectrum Paints Inc. is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, the firm is subject to the direct corporate governance requirements of
the federal government.
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.
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.
Space Flight Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. The firm is charged with violating the Securities Act of 1933. Its best defense is
the untrue statements were not material
The Food and Drug Administration (FDA) wants Pharma Inc. to produce certain records for review. Pharma need not reveal
trade secrets
The National Park Service hires Outdoor Play Inc. to replace outdated playground equipment in a handful of national parks. For this action, an environmental impact statement is most likely
unnecessary because the action is not "major.
Federal and state laws are aimed at protecting consumers from all of the following except
unwise purchases.