Legal quizzes 19-24

The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue

a subpoena

Dian and Elton buy a duplex in Fargo, North Dakota. On the death of either owner, that owner's interest in the duplex passes to his or her heirs. This is

a tenancy in common.

To raise capital to form Plasticity Corporation with Quinn, Rona sells bonds and stock in other companies, and plans to register an initial public offering under the Securities Act of 1933. SEC Rule l0b-5 covers

most forms of securities.

Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further action that it will take. This violates

no federal law.

Fresh Seasonal 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.

Bucolic Homes, Inc., develops a thirty-lot suburban subdivision. Bucolic wants to restrict construction on each parcel to a single-family home. Bucolic includes a declaration of this restriction on the development's map. which is filed in the appropriate public office. There is a reference to the map on each deed. This is

a restrictive covenant.

Grease & Lubricants Inc. makes its products without required pollution control technology, causing a discharge of oily waste into the nearby Holly Lake. This activity can result in

a criminal fine, imprisonment, an injunction, or damages.

Celfone 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.

Becca and Candy own 1,000 shares of stock in Dockside Dining Restaurant Corporation. On the death of ether owner, that owner's interest in the stock passes to the surviving owner. This is

a joint tenancy.

Emmett, the owner of Fallow Fields Farm, sells Greta a right to camp on Fallow land overnight. Greta's right is

a license.

Roderick possesses five hundred acres of forested property. Roderick has the right to use the land, including cutting its timber, for life. Roderick also has the right to lease the land for a period not to exceed his life. This ownership interest is

a life estate.

Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is

a market division.

The Federal Emergency Management Agency (FEMA) discovers that Goodnuff Trailers, Inc., is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be

a negotiated settlement

Thermo Gas, Inc., and Uno Oil Corporation refine and sell gasoline and other petroleum products. To limit the supply of gas on the market and thereby raise prices, Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is

a per se violation of the Sherman Act.

Squeaky Clean Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before Squeaky sells its securities, it must provide investors with

a prospectus.

Master Manufacturing Corporation has exclusive control over the market for its product. Under the Sherman Act, this is

a violation if it acquired this power through "anticompetitive means."

To acquire monopoly power in its market, Perfect Plastics, Inc., sets its prices lower than its competitors. Under the Sherman Act, this is

a violation if it thereby acquires monopoly power.

Metal Smelting, Inc., operates a plant - "major source" - that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely

a violation.

Metro City operates its own municipal public drinking water system for which the Environmental Protection Agency has set maximum levels of pollutants. Metro does not use any equipment to meet these standards. With regard to any contamination of the water, under the Safe Drinking Water Act, this is most likely

a violation.

Bliss County Zoning Commission demands that Commercial Development, Inc., the private developer of Discount Stores, allocate space for parking and take other measures to manage traffic. This is

a zoning restriction.

Congress enacts a new air quality statute that applies to businesses. To enforce federal environmental legislation, the federal government relies on

all levels of government and private citizens.

SmartPhone Company's ad states that its product is "The Best that Money Can Buy." Because of this ad, the Federal Trade Commission is most likely to issue

none of the choices.

RingTone Corporation is a public company whose securities are traded among investors. Under the Securities Act of 1933, a security is

almost any stake in the ownership or debt of a company.

Nursing Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Nursing Home Care will be required to appear at a hearing presided over by

an administrative law judge

Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economic competition, this law is referred to as

an antitrust law.

Region Construction Company has a right to drive its trucks across Staple Business, Inc.'s property, which is adjacent to Region's office. This right is

an easement.

North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely

an illegal restraint on trade.

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.

Green River Energy Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Green River must install certain equipment

before beginning operations.

The Merit Systems Protection Board issues a rule. Like other administrative agencies' "legislative rules," this rule is as

binding as a law passed by Congress.

Big U.S. Oil Company joins with a foreign cartel to control the price of oil. If the cartel has a substantial effect on U.S. commerce

both Big U.S. Oil and the foreign cartel can be sued for violation of U.S. antitrust laws.

Frothy Beverage Corporation is a public company whose shares are traded in the public securities markets. Under the Securities Act of 1933, Frothy is required to

disclose financial and other information about its securities.

Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land and pay the owner just compensation. This is an exercise of

eminent domain.

Gear Motor Company makes cars. Federal law requires Gear to attach an information label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to

every new car.

Clean n' Green, Inc., operates a chain of car washes throughout the United States. The government entity that is most likely to be involved in regulating the chain's environmental impact is

federal and state regulatory agencies.

Bild-It-Rite Corporation is a public company that is preparing to issue securities that do not qualify for an exemption from registration. This means that Bild-It-Rite must

file a registration statement with the SEC.

Geof sells his Hawt Dawgs Lunch Counter Cafe to Ilene. The title is transferred by deed. Ilene is the

grantee.

A suit is filed against Dormroom Furniture Unlimited, Inc., alleging that the firm has committed the offense of monopolization. To determine whether Dormroom has committed this offense, the court will consider the extent of Dormroom's market power and

how Dormroom acquired its power.

Rock Mining Company operates a gravel pit next to Siera's residence. Siera files a suit against Rock, alleging that the pit is a source of pollution and unreasonably interferes with the enjoyment of her property The court is most likely to award Siera an injunction

if letting the pollution continue is more harmful than stopping it.

Gourmet Foods, Inc., requires all distributors of its products to sell them at a specified minimum price. Under the Sherman Act, this is a violation

if the anticompetitive effects outweigh the competitive benefits.

Before adopting new regulations to govern Internet-based phone services, the Federal Communications Commission may not

ignore the Administrative Procedure Act to streamline proceedings

Heavy Hauling, Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that Heavy Hauling's financial results are accurate and timely, the firm's senior officers must set up and maintain

internal "disclosure controls and procedures."

Smelting & Refining Company generates solid waste considered hazardous. The company labels and packages properly all waste to be transported to a disposal site. Under the Resource Conservation and Recovery Act, this is most likely

not a violation.

Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without Kirk's permission, his roommate Leif uses the card to buy a new laptop for $1,800. Kirk is

not liable for any amount.

Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to terminate his tenancy. Under the common law, he must give his landlord notice of at least

one week.

Independent regulatory agencies such as the Federal Trade Commission are

outside the major departments of the government's executive branch

Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients' permission. This is subject to

possible fines by the Federal Communications Commission.

Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at prices substantially below the normal cost of production, Spa Selectiva hopes to drive its competitors from the market. This is

predatory pricing.

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is

publish a notice of the proposed rulemaking

The Internal Revenue Service (IRS) wants to seize certain documents of Monetary Propriety, Inc. Whether it is permissible for the IRS to request or seize the documents depends on whether the documents are

relevant

Grid Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Grid to

remove the tool from the market

Energy Market Corporation wants to build a wind power plant on private land, for which a federal permit is required. For this action, an environmental impact statement is

required.

Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are

required.

To fall under the Sherman Act, an activity must

substantially affect interstate commerce

Debt & Loan Collection Agency calls Ethel several times a day, and sometimes in the middle of the night, about an overdue bill that a Furniture4U store turned over to Debt & Loan for collection. This is a violation of

the Fair Debt Collection Practices Act.

To notify the public of a proposed rule, the Food Safety and Inspection Service, like other federal agencies, publishes the proposal in

the Federal Register

Nature's Food Market sells groceries. Metro Snacks & Drug Store 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

Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances---stove, refrigerator, dishwasher, microwave, and toaster oven---for $3,999. This transaction is subject to

the Truth-in-Lending Act

Buck owns five acres of land in California. On the land Buck has a house and a toolshed. There are ten large maple trees around the house. The real property includes

the land, the house, the toolshed, and the trees.

The operations of Metal Refining Industries, Inc., are major sources of air pollution. These operations must use

the maximum achievable control technology.

Jessie owns a single-family home. With respect to this structure, most likely to meet the definition of a fixture is

the plumbing in the kitchen and bathrooms.

Global Investments Corporation buys and sells securities. Section 10(b) of the Securities Exchange Act of 1934 applies to

the purchase or sale of any security.

Nouveau Riche Corporation's officers, directors, and shareholders buy and sell securities. SEC Rule 10b-5 applies to

the purchase or sale of any security.

GR8 Stuf Company 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. GR8 Stuf is charged with violating the Securities Act of 1933. GR8 Stuf's best defense is

the untrue statements were not material.

Lucas owns Muddy Flats Ranch in New Mexico. The exterior boundaries of the land extend

to the center of the earth and up to the farthest reaches of the atmosphere.

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."

New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is

unnecessary.

The U.S. Patent and Trademark Office (USPTO) wants to review certain records of Verity Corporation. The USPTO can legitimately gain access to the records through

verity's consent