BLAW QUIZ 4 (okstate, holden, spring 2020)

Which legislation created the Securities and Exchange Commission (SEC)?

The Securities Exchange Act of 1934

Which federal administrative agency enforces the Fair Labor Standards Act (FLSA) and its regulations?

The United States (U.S.) Department of Labor

A security is any investment that involves a person giving something with a(n) __________ through the efforts of a(n) __________.

expectation of profit; third party

Upon approval by a __________ court, the SOX Act allows the __________ to force any __________ corporate payouts into a government-controlled emergency escrow fund that is pending further investigation by authorities.

federal; Securities and Exchange Commission (SEC); extraordinary

A __________ is a highly regulated institution in which people and firms trade such things as securities, commodities, and domestic and foreign currencies at prices that reflect supply and demand as well as publicly- and privately-available information.

financial market

Financial institutions that provide services for investors and issuers related to securities transactions are known as __________.

intermediaries

In 1996, the United States Congress __________ the types of transactions that may be regulated by the states by passing the __________.

limited; National Securities Markets Improvement Act

To determine whether the parties have in fact manifested an offer of agency and acceptance by the agent, courts apply a(n) __________ standard.

objective

If Juan hires ABC Painting, Inc. (ABC) to paint his house, but the house is destroyed by a fire sparked by a lightning strike before ABC begins to paint, the agency relationship between Juan and ABC is terminated by __________.

operation of law

In a __________ plan, the employer promises to pay a monthly sum to employees who retire from the company after a certain number of years of service.

pension

Pursuant to Dodd-Frank, employees of __________ entities may collect a bounty of __________ of any monetary sanctions collected in a Securities and Exchange Commission (SEC) enforcement action if the information they provide to government agencies results in a penalty exceeding __________.

publicly-held; ten (10) to thirty (30) percent; $1,000,000

In the __________ theory of sexual harassment, the harasser demands sexual favors as a condition of continued employment or as a prerequisite for a promotion or a pay raise.

quid pro quo

In addition to complying with federal antidiscrimination statutes, certain employers are also subject to regulation under a(n) __________ scheme.

state antidiscrimination statutory

General Motors Company (GM) is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets, and distributes vehicles and vehicle parts. The company has approximately 173,000 employees, and in 2018, it generated approximately $147 billion in revenue. If GM should fail as a company, its demise would shake the United States automobile industry to its foundation, with corresponding "ripple effects" across the entire economy. The possibility of GM failing is known as a(n) __________ risk.

systemic

To trigger protection under workers' compensation laws, the injury must meet two (2) main criteria: __________ and __________.

the injury was accidental; the injury occurred within the course of employment

The Fair Labor Standards Act's (FLSA's) primary provisions mandate __________.

the payment of a minimum wage; a maximum 40-hour work week; and restrictions on child labor

The Family and Medical Leave Act (FMLA) mandates that employers provide up to __________ weeks of unpaid leave to employees for purposes related to family medical matters during any __________-month period.

twelve (12); twelve (12)

Which of the following is an example of an employer-provided, tax-deferred retirement savings account?

A pension

Many states have adopted the __________ in their agency law as a standard for determining agency status.

ABC test

The SOX Act was intended to impose stricter regulation and controls on how corporations do business through regulation of which of the following three (3) areas?

Auditing; financial reporting; and internal corporate governance

What are two prevalent forms of equity instruments issued by corporations?

Common stock and preferred stock

What occurs when an agent agrees to act for the principal?

Consent

When did affirmative action in employment begin?

During World War II

Which of the following can be used by an employer as a BFOQ?

Gender or national origin

Which of the following is true regarding the risk capital test?

It analyzes whether an investment opportunity falls under the purview of a state's blue-sky laws.

Which of the following is true regarding the Securities and Exchange Commission (SEC)?

It has wide-ranging executive, legislative, and judicial powers.

Suppose that Jeff and Douglas are college roommates. Both chose to do their laundry at the dormitory laundry facility on Tuesday evening. Since Jeff had to study for a biology examination, he asked Doug to pick up his laundry as a favor for him when it was done, and Doug agree to do so. In this case, Doug is __________.

Jeff's gratuitous agent

Which of the following is true regarding professional licensing in the American workplace?

Licensing requirements for professions vary from state to state.

What is a crucial aspect of securities that are traded in secondary markets?

Liquidity

How do state antidiscrimination statutes differ from federal antidiscrimination laws?

Some states have expanded protected class membership to discrimination based on sexual orientation or gender transformation.

Which of the following is true regarding the Securities and Exchange Commission's intervention in an extraordinary payment case?

The SOX Act does not require any formal allegation of wrongdoing as a prerequisite for intervening in an extraordinary payment case.

Which legislation regulates the issuance of securities to public investors by requiring that companies file certain information intended to inform investors who are considering entering into a securities transaction?

The Securities Act of 1933

Which of the following is the centerpiece of labor-management regulation statutes?

The National Labor Relations Act

Which federal agency implements, administers, and enforces the SOX Act mandates?

The Public Company Accounting Oversight Board (PCAOB)

In 2012, what was the percentage of American wage and salary workers who were members of a union?

11.3

Which of the following is a classic example of systemic risk?

A bank run

What is the process of negotiating an agreement on behalf of an entire workforce as opposed to individuals negotiating privately on their own behalf?

Collective bargaining

Audit committees have substantial regulatory obligations under the SOX Act. These include which of the following?

Having the authority to engage, monitor, and terminate the company's outside auditing firm; implementing a system of controls that involves a comprehensive examination of the audit reports and methods used by the company and outside auditors to properly report information that truly reflects the financial condition of the company; and establishing a structure that facilitates communication directly between the audit committee and the auditors

Issuing securities to the public markets for the first time is known as an __________.

IPO

Which of the following tests determines an agent's status based on: (1) the behavioral aspects of the agency; (2) the financial arrangements between the principal and the agent; and (3) the type of working relationship the parties have in terms of benefits and promises and continuing employment?

The IRS Test

Which capital market consists of firms raising capital by selling securities in public markets or in private placements?

The primary market

Which capital market involves the trading of already-issued securities?

The secondary market

Fundamentally, the Dodd-Frank whistleblower provisions are based on __________.

a bounty plan

Most commonly, intermediaries are __________.

brokerage firms

The term "financial markets" is most often used to refer to __________ markets, which in turn consist of __________ markets as well as __________ markets.

capital; stock; bond