Business Law

Andy causes a disturbance at Brew Pub. He is arrested and charged with disorderly conduct, a crime punishable by imprisonment up to one year. This crime is a. a tort. b. a felony. c. a misdemeanor. d. a civil wrong.

c. a misdemeanor.

Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to a. the Consumer Product Safety Act. b. the Consumer Leasing Act. c. the Truth-in-Lending Act. d. no federal law.

c. the Truth-in-Lending Act.

Posing as eBank, Frank e-mails Grace, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Frank promptly sells to Hector. This is a. hacking. b. cyberterrorism. c. no crime. d. phishing.

d. phishing.

The Miranda v. Arizona case requires that anyone arrested on suspicion of criminal activity must: Be informed of certain constitutional rights. Spend a night in jail. Come before a judge within 36 hours of the arrest. Be reimbursed for any financial loss caused by the arrest. None of these choices.

Be informed of certain constitutional rights.

Ted is very tech saavy and knows a lot about computers. He is able to break into company networks and individual e-mails to steal information and create havoc and damage to such. Based on this information alone, what crime is Ted probably not guilty of here? Cyber theft. Identity theft. Hacking. Cyber terrorism. Phishing.

Hacking.

A physical attack can be a tort or a crime or both. T/F

T

Corporations are normally liable for the crimes committed by their agents and employees within the course and scope of their employment. T/F

T

Activities considered contrary to public values and morals such as public drunkenness and prostitution are classified as: No-fault crimes. Victimless crimes. Shameful crimes. Turpitude crimes. Private order crimes.

Victimless crimes.

Gem programs software to prompt a computer to continually crash and reboot. Gem intends to install this program on various companies computer systems without the companies knowledge. The program can reproduce itself but must be attached to a host file to travel from one computer network to another. This program is a Hacker. Botnet. Virus. Worm. Malware.

Virus.

Olinda, an employee of People's Bank, deposits into her account checks entrusted to the bank through its ATM system by customers to deposit into their accounts. This is a. embezzlement. b. robbery. c. larceny. d. wire fraud.

a. embezzlement.

Luan, a programmer for Monetized Nation Inc., a business modeling service, learns of undisclosed company plans to distribute a new app. Luan reveals the company plans to a friend, Ono, who buys 5,000 shares of the firm's stock. Under the Securities Exchange Act of 1934, Ono is most likely a. liable for insider trading. b.not liable because Ono did not solicit information from Luan. c. not liable because Ono does not work for the firm. d.not liable because Ono did not prevent others from profiting.

a. liable for insider trading.

Cosmétique Inc. makes and sells cosmetics and related products. By selling its goods at prices substantially below the normal cost of production, the firm hopes to drive its competitors from the market. This is a. predatory pricing. b. market power pricing. c. price discrimination. d. price-fixing.

a. predatory pricing.

Grain Mills Corporation is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 14(a) of the act regulates a. the solicitation of proxies from the firm's shareholders. b. the short-swing activities of the firm's insiders. c.the declaration of dividends by the firm's board of directors. d. the later re-registration of the firm's securities.

a. the solicitation of proxies from the firm's shareholders.

Corporate Financial Inc., and its officers, directors, employees, and shareholders, buy and sell securities on behalf of themselves and their clients. SEC Rule 10b-5 applies to the purchase or sale of a. a security by the corporation only. b. any security. c. a security involving short-swing profits only. d. a security involving a corporate insider only.

b. any security.

The Racketeer Influenced and Corrupt Organizations Act is an effective tool in attacking a. criminal activities occurring online. b. certain white-collar crimes. c.businesspersons who use bribery to secure foreign contracts. d. defenses that excuse criminal behavior.

b. certain white-collar crimes.

Lloyd is accused of a crime. Evidence of his allegedly criminal activities can be excluded from a trial a. under no circumstances. b. if the evidence is "fruit of the poisonous tree." c. if the evidence will be used to prosecute him. d.if the police do not promise to keep the evidence confidential.

b. if the evidence is "fruit of the poisonous tree."

To drive its competitors out of a certain geographic segment of its market, Drones Inc. sets the prices of its products below cost for the buyers in that area. This is a. predatory pricing. b. price discrimination. c. price-fixing. d. smart marketing.

b. price discrimination

Dig Inc. is the major wholesale distributor of heavy equipment in six states. Dig's closest competitor is Excavator Company. The two firms agree that Dig will operate in four of the states and Excavator in the other two. This is a. a group boycott. b. a price-fixing agreement. c. a market division. d. a trade association.

c. a market division.

The United States taxes most goods imported from China at a flat rate. This is a. a quota. b. an antidumping duty. c. a tariff. d. a dumping duty.

c. a tariff.

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 a. puffery. b. counteradvertising. c. bait-and-switch advertising. d. a cease-and-desist order.

c. bait-and-switch advertising.

Honi puts up a collection of sports memorabilia for bids on InstaBuy, an auction website. Jay makes the highest bid and sends the payment, which Honi receives, but she does not send the collection. This is a. identity theft. b. phishing. c. cyber fraud. d. no crime.

c. cyber fraud.

Evita, a police officer, wants to search the offices of Debit & Credit, Accountants. She asks Judge Bern to issue a warrant. No warrant for a search can be issued without a. double jeopardy. b. immunity. c. probable cause. d. reasonable doubt.

c. probable cause.

Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is a. a civil wrong. b. a tort. c. a misdemeanor. d. a felony.

d. a felony.

A speedy trial, a trial by jury, a public trial, and the right to confront witnesses are guaranteed by a. the Fourth Amendment. b. state law, not the U.S. Constitution c. the Fifth Amendment. d. the Sixth Amendment.

d. the Sixth Amendment.

When a grand jury decides that someone should be charged for an alleged crime, such a charge is called an: Initial appearance. Indictment. Explanation of charges. Information. Booking.

Indictment.

A Latin term used in law, a wrongful mental state is known as: Actus reus. Deus ex machina. Mens rea. Res ipsa loquitor. Stare decisis.

Mens rea.

Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is a. direct exporting. b. indirect exporting. c. licensing. d. a distribution agreement.

c. licensing.

Match each with the appropriate corresponding summary/description appearing below. Designed to control air pollution; one of the most influential and comprehensive modern environmental laws. Protects of fish and wildlife, and elimination of discharged pollutants into waterways among other things. The first major U.S. law to address water pollution. Considered a forerunner of today's modern environmental laws, it prohibited the construction of any bridge, dam, dike or causeway over or in navigable waterways of the U.S. without Congressional approval. Streamlined and strengthened the EPA's ability to prevent and respond to certain catastrophes. Protects water supplies, sets standards for water quality, and implements certain technical/financial programs. Regulate intentional disposal of materials into certain waters and authorizes any related research.

A. Federal Water Polution Control Act B. Clean Air Act C. Oil Pollution Act D. Clean Water Act E. Marine Protection, Research, & Sanctuaries Act (Ocean Dumping Act) F. Rivers and Harbors Appropriations Act G. Safe Drinking Water Act

Match each with the appropriate corresponding summary/description appearing below. Certain types of unsolicited merchandise may be retained, used, discarded, or disposed of in any manner. Prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising. Restricts telephone solicitations (i.e., telemarketing) and the use of automated telephone equipment; also limits the use of automatic dialing systems, artificial or prerecorded voice messages, SMS text messages, and fax machines. Telephone Consumer Protection Act Requires solicitors to identify themselves and not misrepresent facts. Requires telemarketers to make specific disclosures of material information; prohibits misrepresentations; sets limits on the times telemarketers may call consumers; prohibits calls to a consumer who has asked not to be called again; and sets payment restrictions for the sale of certain goods and services. Requires sellers who solicit buyers to order merchandise through the mail, via the Internet, or by phone to have a reasonable basis to expect that the sellers can ship within the advertised time frame, or, if no time frame is specified, within 30 days.

A. Lanham Act B. Telephone Consumer Protection Act C. Telemarketing Sales Rule (TSR) D. Telemarketing and Consumer Fraud and Abuse Act E. Postal Reorganization Act F. FTC Mail or Telephone Order Merchandise Rule

Match each with the appropriate corresponding summary/description appearing below. Requires products identify certain details about the product. Imposed regulations for caloric content of restaurant foods; also expanded health care coverage for children and seniors. Requires nutrition labeling of most foods regulated; requires that all nutrient content claims (i.e., 'high fiber', 'low fat', etc.) and health claims be consistent with regulations. Requires automakers to attach to every new car an information label that includes the Environmental Protection Agency's fuel economy estimate for the vehicle.

A. Nutrition Labeling and Education Act B. Affordable Care Act (ACA) C. Fair Packaging and Labeling Act D. Energy Policy and Conservation Act

Match each with the appropriate corresponding summary/description appearing below. Regulates chemicals and chemical compounds that are known to be toxic, such as asbestos and polychlorinated biphenyls (PCB's). Authorizes regulations for monitoring, transporting, storage, treatment, and disposal of hazardous substances. Resource Conservation and Recovery Act Requires anyone planning to use chemicals first determine their effect on human health and environment. Toxic Substances Control Act Designed to ensure the clean-up of hazardous waste sites and to assign liability for the costs of the cleanup. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Protect living organisms that are threatened with extinction. Allows developers who comply with state voluntary clean-up programs to avoid federal liability for the properties that they decontaminate and develop. Small Business Liability Relief and Brownfields Revitalization Act Generally limits environmental harm from federal government activities.

A. Small Business Liability Relief and Brownfields Revitalization Act B. Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) C. Toxic Substances Control Act D. Resource Conservation and Recovery Act E. National Environmental Policy Act F. Endangered Species Act G. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Match each with the appropriate corresponding summary/description appearing below. Reduces the risk of identity theft by regulating how consumer account information is handled. Prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. Requires sellers and lenders to disclose credit terms or loan terms so that individuals can shop around for the best financing arrangements. Makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of certain protected classes. Promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies; intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports.

A. Truth-in-Lending Act (TILA) B. Fair Credit Reporting Acts (FCRA) C. Fair and Accurate Credit Transactions Act (FACT) D. Fair Debt Collection Practices Act (FDCPA) E. Equal Credit Opportunity Act (ECOA

Match each with the appropriate corresponding summary/description appearing below. Establishes food standards, specifies safe levels of potentially hazardous food additives, and provides classifications of foods and food advertising. Regulates the way foods are grown, harvested and processed; also provides authority to directly recall any food products that it suspects are tainted, rather than relying on the producers to recall items. Among other things, ifted restrictions on preventative services and preexisting conditions, and imposed cost controls with regard to prescription drugs and health insurance. Created a commission with broad regulatory authority over the safety of consumer products; also provides authority to pursue recalls and to ban products under certain circumstances.

A.Food Safety Modernization Act (FSMA) B.Affordable Care Act (ACA) C.Federal Food, Drug and Cosmetic Act (FDCA) D.Consumer Product Safety Act

When tacked on to crimes such as robbery or burglary, the added element of committing the crime with a deadly weapon is said to be: Aggravated. Loathsome. Arbitrary. Notorious. Capricious.

Aggravated

Which of the following is usually not an acceptable defense to criminal liability? Necessity. Justifiable use of force. Insanity. Duress. All of these are correct.

All of these are correct.

Pick the correct ordering of the typical major procedural steps in a criminal case. Arrest > Booking > Initial Appearance > Preliminary Hearing (or Grand Jury) > Information or Indictment > Arraignment > Trial Arrest > Booking > Preliminary Hearing (or Grand Jury) > Initial Appearance > Arraignment > Information or Indictment > Trial Arrest > Preliminary Hearing (or Grand Jury) > Arraignment > Booking > Information or Indictment > Initial Appearance > Trial Arrest > Booking > Initial Appearance > Preliminary Hearing (or Grand Jury) > Arraignment > Information or Indictment > Trial None of these is correct.

Arrest > Booking > Initial Appearance > Preliminary Hearing (or Grand Jury) > Information or Indictment > Arraignment > Trial

Because a corporation is a legal entity and not a human being, there can never be corporate criminal liability. T/F

F

Misdemeanors are lesser crimes punishable by a fine or imprisonment for up to five years. T/F

F

One cannot be guilty of arson for burning their own home or property. T/F

F

Which one of the following is false regarding the Sarbanes-Oxley (SOX) Act of 2002? It provides for the regulation and registration of securities exchanges, brokers, dealers, and national securities associations. It provide investors with more information, prohibits deceptive practices, and prevents insider trading and unfair practices. It requires chief corporate executives to take personal responsibility for the accuracy of financial statements and reports that are filed with the SEC. It attempts to increase corporate accountability by imposing strict disclosure requirements and harsh penalties for violations of securities laws. It requires publicly traded companies to set up confidential systems so that employees and others can "raise red flags" about suspected illegal or unethical auditing and accounting practices.

It requires publicly traded companies to set up confidential systems so that employees and others can "raise red flags" about suspected illegal or unethical auditing and accounting practices.

If an owner leaves a lawn mower in the front yard and someone else walks by and takes that lawn mower, the taker probably has committed the crime of: Burglary. Assault. Larceny. Embezzlement. Receiving stolen goods.

Larceny.

Nery, a police officer, wants to search the offices of Operational Business Corporation. She asks Judge Pearl to issue a warrant. Under the Fourth Amendment, no warrant for a search can be issued without: Double jeopardy. Probable cause. Reasonable doubt. Immunity. Reading Miranda rights.

Probable cause.

The primary objective of the Foreign Corrupt Practice Act (FPCA) of 1997 is to: Prohibits U.S. businesses from making payments to (bribing) officials in other countries to secure beneficial contracts. Increase corporate accountability by imposing strict disclosure requirements and harsh penalties for violations of securities laws. Prohibit various forms of fraud and to stabilize the securities industry by requiring disclosure of certain information to investors. Provides for continuous periodic disclosures by publicly held corporations to enable teh government to regulate subsequent trading. Establish criteria as to whether a foreign sovereign nation (or its political subdivisions, agencies, or instrumentalities) is immune from suit in U.S. federal or state courts.

Prohibits U.S. businesses from making payments to (bribing) officials in other countries to secure beneficial contracts.

Which of the following would be considered a violent crime? Burglary. Robbery. Larceny. Arson. Bribery.

Robbery.

Felonies are crimes like arson, murder, rape, or robbery that carry the most severe sanctions. T/F

T

Regulation Z was issued by the Federal Reserve Board of Governors to implement the disclosure requirements of the Truth-in-Lending Act. T/F

T

The Federal Food, Drug, and Cosmetic Act protects consumers against contaminated and misbranded food and drugs. T/F

T

Which of the following grants normal trade relations (NTR) status to other member countries and facilitates regional trade agreements and associations help to minimize trade barriers between nations? The World Trade Organization (WTO) The Berne Convention The New York Convention The Convention on Contracts for the International Sale of Goods (CISG) The TRIPS Agreement of 1994

The World Trade Organization (WTO)

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of a. the principle of comity. b. the doctrine of sovereign immunity. c. the act of state doctrine. d. the Foreign Sovereign Immunities Act.

a. the principle of comity.

The government of Japan sets a limit on the amount of beef that can be imported from the United States. This is a. a quota. b. an antidumping duty. c. a dumping duty. d. a tariff.

a. a quota.

Trade barriers are a. restrictions on exports. b. restrictions on imports. c.the lack of incentives and subsidies to stimulate exports. d.the lack of incentives and subsidies to stimulate imports.

a. restrictions on exports.

Lu's application to Metro Bank for a credit card is denied. Lu can obtain information on his credit history in a credit agency's files under a. the Fair Credit Reporting Act. b. no federal law. c. the Equal Credit Opportunity Act. d. the Fair Debt Collection Practices Act.

a. the Fair Credit Reporting Act.

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 a. the Fair Debt Collection Practices Act. b. the Truth-in-Lending Act. c. no federal law. d. the Fair and Accurate Credit Transactions Act.

a. the Fair Debt Collection Practices Act.

Venezuela seizes the assets of World Oil Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. a court in Venezuela.

a. the act of state doctrine.

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago is exempt from the court's jurisdiction. This is an application of a. the doctrine of sovereign immunity. b. a coercive action. c. the act of state doctrine. d. the principle of comity.

a. the doctrine of sovereign immunity.

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. a market division. b. a group boycott. c. a trade association. d. a tying arrangement.

b. a group boycott.

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 a. designate a corporate official to assume liability for inaccuracies. b. certify that the reports are complete and accurate. c. do nothing. d. read the reports and be prepared to answer questions about them.

b. certify that the reports are complete and accurate.

Orbital Flights Inc. is required to register its securities under Section 12 of the Securities Exchange Act of 1934. This means that, with respect to Orbital, Section 16(b) of the act covers a. the short-swing activities of Orbital's insiders. b. the solicitation of proxies from Orbital's shareholders. c.the declaration of dividends by Orbital's board of directors. d. the later re-registration of Orbital's securities

b. the solicitation of proxies from Orbital's shareholders.

When applying the rule of reason to an activity that allegedly violates the antitrust laws, a court will not consider a. the potential effect of the agreement on competition. b. the parties' market ability to implement the agreement. c. whether the agreement is a per se violation. d. the purpose of the agreement.

c. whether the agreement is a per se violation.

Equity Corporation, and its officers, directors, employees, and shareholders, buy and sell securities. Section 10(b) of the Securities Exchange Act of 1934 applies to the trading of securities a. only by investment companies on organized exchanges. b.only involving short-swing profits obtained in over-the-counter markets. c. only involving tippers and tippees in private transactions. d. in almost any circumstances.

d. in almost any circumstances.

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is a. space law. b. universal law. c. national law. d. international law.

d. international law.

Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must a.convince the court it is more likely than not that the charges are true. b.persuade three-fourths of the jurors to agree on a guilty verdict. c. show the evidence as reasonably permitting a guilty verdict. d.prove beyond a reasonable doubt that Rosa committed every essential element of an offense.

d. prove beyond a reasonable doubt that Rosa committed every essential element of an offense.

Zoey is accused of auto theft. She refuses to give information related to her alleged criminal activities because she suspects it will be used to prosecute her. This is a. a mistake of fact. b. entrapment. c. ignorance of the law. d. the privilege against self-incrimination.

d. the privilege against self-incrimination.