Business Law Final 2

38. The main goal of the Clean Water Act of 1972 is to: a. reduce the amount of dumping in oceans around the U.S. b. restore and maintain the integrity of the waters of the U.S. c. improve the quality of drinking water from the nation's reservoirs d. increase the amount of undeveloped wetlands in the U.S. e. all of the other choices

b

49. The Securities Litigation Reform Act of 1995: a. makes companies strictly liable for misstatements b. gives companies and executives a safe harbor when making forecasts about the future c. imposes greater liability on companies that make predictions about future performance d. changes the liability standard in securities fraud cases to negligence e. does none of these things

b

Jayme's Best produced a new line of pasta sauce (Herbal Health), intending for it to have extra nutritional benefits. Using the freshest ingredients, Jayme's added special herbs to the tomato paste and spices, as the herbs are believed by some Tibetan monks to have the power to prevent cancer. Jayme's marketed the sauce in grocery stores and health food stores. Jayme's advertisements said that Herbal Health may help prevent cancer and taste a lot better than the competition. Based on these facts, answer the following question(s). ____ 40. Refer to Fact Pattern 19-2. The Nutrition Labeling and Education Act does not require Jayme's to list: a. calories per serving size. b. how much the risk of cancer is reduced by consuming the sauce. c. nutrients, such as vitamins and minerals, per serving size. d. total and saturated fat per serving size. e. all such information must be provided.

b

37. In Sierra Club v. Mississippi Enviro. Quality Permit Board, where the Board approved an air pollution permit for a large pig farm, but the Sierra Club challenged the process as inadequate and claimed that better control were needed, the state supreme court held that: a. the Board's decision was "arbitrary and capricious" and so could not be justified b. the Board's decision violated federal standards, so EPA would be asked to review the matter to determine appropriate technology c. the Board's decision was supported by evidence and would stand d. the Board showed that the technology used would result in no net increase in air pollution, which meets the state standard e. none of the other choices

c

44. Acme produces hamburger at a processing plant. Stores send trucks to pick up the meat. Prince, a large chain of grocery stores, tells Acme it will buy its hamburger if Acme will charge it 5% less than what the grocery stores pay. Acme sells the meat to Prince for less. What violation of the antitrust law may have occurred? a. illegal resale price maintenance b. illegal exclusive dealing c. illegal price discrimination d. illegal boycott e. none of the other choices

c

39. The elimination of CFCs (cloroflourocarbons) to protect atmospheric ozone cost the world economy an estimated: a. $100 million b. $250 million c. $20 billion d. $200 billion e. there was a net economic gain from the decision

d

42. In U.S. Steel Corp. v. Fortner Enterprises, U.S. Steel loaned Fortner money to buy mobile homes from the company to put in his mobile home park, the Supreme Court held that it was: a. illegal for U.S. Steel to tie the sale of the homes to the financing b. an illegal boycott for U.S. Steel to refuse to lend the money once they sold the homes c. illegal for the homes to be sold with the financing since it created an exclusive deal d. not illegal to tie the sale of the homes with the financing because there was no monopoly power involved e. not price discrimination under the Robinson-Patman Act to fix the home price together with the financing rate

d

43. Price discrimination under Robinson-Patman is said to occur when different: a. sellers sell the same product at varying prices b. sellers agree to charge the same price for their products c. buyers pay the same price to a seller for the same product d. sellers demand the same price from different buyers e. none of the other choices

d

46. The SEC allows for a private placement exemption because: a. registration of "blue chip" securities is not necessary b. small investors have insufficient information about the background of such offerings, so they need additional protection c. small issuers need a break in the costs of the process to be able to compete effectively with large securities' issuers d. purchasers of these securities are sophisticated and more able to protect themselves when purchasing unregistered securities e. issuers need greater flexibility when dealing with large numbers of small investors

d

47. Accredited investors, under SEC Regulation D for private placements include: a. banks and insurance companies b. individuals with accounts with registered stock brokers c. individuals with annual incomes over $200,000 or a net worth of at least $2.5 million d. banks and insurance companies and individuals with annual incomes over $200,000 or a net worth of at least $2.5 million e. banks and insurance companies and individuals with annual incomes over $200,000 or a net worth of at least $2.5 million and individuals with accounts with registered stock brokers

d

50. When member countries of the World Trade Organization files a dispute with the organization, the dispute will be resolved by: a. the General Assembly of the United Nations b. the Board of the International Monetary Fund c. the World Bank d. a three-person arbitration panel e. the International Court of Justice

d

Jeanette finished her M.B.A. at the University of Florida. Before returning to school for the degree, she was a Certified Public Accountant with an accounting firm in Miami. She is now thinking of starting a consulting firm to advise corporate clients of the best ways to establish and maintain their financial records. Jeanette contacts her lawyer, Richard, for advice about whether she should go into business for herself, and, if she does, how to go about setting up a consulting firm. Richard discusses the various options and explains their good and bad points. Please answer the following question(s) based on these facts. ____ 26. Refer to Fact Pattern 13-1. If Jeanette decides to go into business with her friend Maia, Richard suggests that the two establish a partnership to carry on their business. If they do, this means both: a. are co-owners of the business b. share control over the profits of the business c. have limited liability for the debts of the business d. are co-owners of the business and share control over the profits of the business e. are co-owners of the business and share control over the profits of the business and have limited liability for the debts of the business

d

Spotted Frog Winery California, produces 75,000 cases of wine a year. It employs 52 full-time workers and, during harvest, another 25 people as pickers. During the 2008 harvest, some employees were unhappy about working conditions and discussed unionizing. They contacted the Winery Workers of America (WWA) for help. Spotted Frog management was upset. If it had to pay workers more (as the union promised), the winery would lose its slim profit margin. Believing he was acting in the best interests of everyone, the president distributed a memo stating that any employee caught discussing unionization would be fired. Pierre, the wine master at Spotted Frog, was furious about the memo and became an advocate for the union cause. Management could not fire Pierre because he gave their wine its unique taste. But they did fire ten employees who spoke with Pierre. WWA collected authorization cards from employees, requested a representation election, and won a close election. The union, with Pierre as its agent, began negotiating a collective bargaining agreement. Negotiations went badly as the management rejected every proposal. WWA called a strike against Spotted Frog. After two weeks, management caved in and signed a contract, so its employees returned to work. As Pierre entered the winery, he did not see some grape skins on the floor. He slipped and was injured. Please answer the following question(s) based on these facts. ____ 30. Refer to Fact Pattern 16-1. Spotted Frog workers voted for the union. After WWA is selected as the collective bargaining agent, what type of shop will there be? a. a closed shop b. a union shop c. a head shop d. an agency shop e. a collective shop

d

27. A partnership can begin with: a. an implied agreement that can be inferred from the conduct of the parties doing business b. a written agreement c. an oral agreement d. a written agreement or an oral agreement only e. a written agreement or an oral agreement or an implied agreement that can be inferred from the conduct of the parties doing business

e

28. Implied authority consists of: a. the power of an agent to do whatever is authorized by the Uniform Agency Act b. the power to mingle the funds of the agent and principal c. limits on an agent's actions, so that the agent may only do what the principal orders, in writing or orally d. the power of the agent to withhold services if the principal fails to pay her e. none of the other choices

e

29. Congress grants to an agency the power to perform regulatory functions. A statute delegating power to an agency is called: a. an administrative statute b. a regulatory statute c. a permanence statute d. a public interest statute e. none of the other choices

e

31. "Yellow-dog" contracts, in which employees agree not to join a union as a condition of employment, were made unlawful by: a. the Landrum-Griffin Act b. the Wagner Act c. the Taft-Hartley Act d. the Civil Rights Act of 1964 e. none of the other choices

e

32. The Landrum-Griffin Act provides which of the following? a. a Bill of Rights for employers b. states the right to pass laws that prohibit agency shops c. prevents federal courts from issuing injunctions to prevent orderly labor disputes d. all of the other specific choices e. none of the other choices

e

33. Under the Landrum-Griffin Act: a. union finances are subject to federal review b. reports are made available to union members so they know how their dues are being spent c. employers may face penalties for bribing union officials d. employers must report expenditures for attempting to influence collective bargaining e. all of the other choices are provided for in the Act

e

34. The workers at a meat packing plant are on strike. They picket the banks in town to put pressure on the meat packing plant to come to a settlement. The pickets at the banks are: a. legal primary boycotts b. legal under First Amendment rights to free speech c. legal secondary boycotts d. illegal for committing a tort of injuring bank business e. none of the other choices

e

35. A collective bargaining agreement ends and the union and management continue to bargain for a new contract while the workers go on strike. Management hires new workers to replace the union workers on strike. By law, when the strike ends: a. all union workers must be returned to their previous positions b. all replacement workers must be dismissed unless the union agrees to accept them c. the replacement workers must become union members and be paid union wages d. the new collective bargaining agreement must provide higher wages than the previous contract and the new wage level will apply to all workers e. none of the other choices are true

e

36. The agency given the power to file suits against employers and unions believed to be violating Title VII of the Civil Rights Act is the: a. National Labor Relations Board b. U.S. Civil Rights Commission c. Department of Labor d. Equal Pay Commission e. none of the other choices

e

41. A possible benefit of drug regulations in place in many European nations is that: a. new drugs are introduced to the market more quickly b. many more drugs may be purchased without a prescription c. companies wishing to sell in Europe do not need be licensed in each individual country d. pharmaceutical may be less expensive because companies spend less time getting through administrative hurdles e. all of the other choices may be benefits of the European system

e

45. The elements of a security, as the Supreme Court ruled in the SEC v. Howey case include: a. an investment of money b. an investment in a common enterprise c. the expectation that profits from an investment will be generated by the efforts of others d. an investment of money in a common enterprise e. an investment of money in a common enterprise with the expectation that profits will be generated by the efforts of others

e

48. Under the 1934 Securities Exchange Act liability may be imposed on corporate officials for misstatements or omissions made in which of the following? a. public statements by the officials b. SEC disclosure documents c. press releases issued by the company d. public statements by the officials and SEC disclosure documents e. public statements by the officials and SEC disclosure documents and press releases issued by the company

e