Law 4
Which of the following remedies is not available under Title VII of the Civil Rights Act?
corporate equity
A ______ is a legal business entity formed by issuing stock to investors.
corporation
Specialized forms of business organization include all but which of the following?
corporation
A joint stock company is a mixture of a(n) ______ and a ______.
corporation; partnership
In U.S. law, ______ are legal entities.
corporations
With ______ advertising, a company explicitly states that formerly advertised claims were untrue.
corrective
Corrective advertising is also known as ______.
counteradvertising
If either the principal or the agent dies, the agency relationship ______.
is automatically terminated
What is the maximum fine for violation of the Omnibus Crime Control and Safe Streets Act of 1968?
$10,000
The Uniform Commercial Code Section ______ defines a secured interest as an interest in personal property or fixtures which secures payment or performance of an obligation.
1-201(37)
Steps representing the registration process
1. wants to issue securities 2.registration statement 3. Files prospectus 4.prefiling period 5.waiting period 6.posteffective period 7.redherring prospectus 8. SEC declares effective 9. sells all securities
Pursuant to the Interstate Land Sales Full Disclosure Act, anyone planning to sell or lease ______ or more lots of unimproved land through a common ______ must file an initial statement of record with ______ Office of Interstate Land Sales Registration.
100; promotional plan; Department of Housing and Urban Development's
Section ______ of the Securities Exchange Act of 1934 prohibits the use of manipulative and deceptive devices to bypass Securities and Exchange Commission rules.
10b
According to the Fair and Accurate Credit Transactions Act, major credit reporting agencies are required to provide consumers with a free copy of their credit reports every ______.
12
Chapter ______ of the Bankruptcy Code provides for adjustment of the debts of family farmers or family fishermen.
12
Chapter ______ of the Bankruptcy Code involves the reorganization of an individual's debts.
13
Chapter ______ of the Bankruptcy Code permits individuals to pay their debts to creditors in installment plans under the supervision of the court.
13
Title VII charges must be filed with the Equal Employment Opportunity Commission within ______ of the alleged discriminatory act.
180 days
During which decade was the Age Discrimination in Employment Act enacted?
1960s
When the Equal Pay Act was passed in ______, the average wages of women were less than ______% of those of men.
1963; 60
In ______, Congress passed the Equal Credit Opportunity Act as an amendment to the ______.
1974; Truth in Lending Act
In which year was the Private Securities Litigation Reform Act passed?
1995
In the context of the various penalties associated with violations of the Securities Exchange Act of 1934, if a partnership or corporation engages in insider trading, it is subject to fines of up to ______.
2.5 million
Under the Family and Medical Leave Act, an eligible employee is one who has worked at least ______ hours per week for each of ______ months prior to a leave.
25; 12
Section ______ of the Federal Trade Commission Act prohibits unfair and deceptive acts in commercial settings, including consumer purchases.
5
According to Rule 505 of Securities and Exchange Commission's Regulation D, a firm's private offerings may not exceed ______ in a 12-month period. Multiple choice question.
5 million
Generally, a quorum of shareholders exists when shareholders holding more than ______ percent of the outstanding shares are present. Multiple choice question.
50
The Family and Medical Leave Act covers all public employers and private employers with ______ or more employees
50
Chapter ______ of the Bankruptcy Code involves the sale of a debtor's assets by a trustee and the distribution of money to creditors.
7
Each commissioner on the Federal Trade Commission serves a ______-year term.
7
According to the Uniform Commercial Code (UCC) Section ______, if a debtor defaults on a loan, the secured party can take possession of the debtor's collateral.
9-609
Which of the following is not a specialized form of business organization?
A corporate proprietorship
Which of the following is perhaps the most dominant form of business organization?
A corporation
Which of the following is an accurate statement regarding adequacy of consideration in contracts?
A court seldom considers adequacy of consideration.
Which of the following is not considered an agent's right or remedy against a principal?
A right to demand ratification
Which of the following is not an agent's right or remedy against the principal?
A right to indemnification
Which of the following is not a type of partnership?
A sole proprietorship
In the context of a security agreement, a financing statement should include all but which of the following?
A summary of the debtor's credit history
Which of the following is an accurate statement about the formation of partnerships?
A written agreement that creates a partnership is called the articles of partnership.
Although an issuer's offer of up to $5 million in securities in a 12-month period is exempt from the complex requirements of full registration, Regulation ______ nevertheless requires the issuer to file certain reports with the ______. Multiple choice question.
A; Securities and Exchange Commission
property is property acquired by a debtor after a security agreement is made.
After-acquired
The ______ was enacted to prohibit employers from refusing to hire, discharging, or discriminating in terms and conditions of employment against employees or applicants age ______ or older.
Age Discrimination in Employment Act; 40
Which of the following is an accurate statement about professional corporations in the United States?
All 50 states permit professional corporations to incorporate.
Which statement is accurate regarding employment testing and Title VII of the Civil Rights Act?
Although employment testing may adversely affect a class, it does not violate Title VII if it is manifestly related to job performance.
The goal of the ______ is to prevent employers from discriminating against employees and applicants with disabilities.
Americans with Disabilities Act
Which of the following statements regarding at-will employment is incorrect?
An at-will employee is entitled to due process prior to termination of employment
Which of the following is an incorrect statement about an employer-employee relationship?
An employee is also known as an independent contractor.
Which of the following are true about the use of social media in firing decisions by employers? (Check all that apply.)
An employee's comments on social media are generally not protected if they were not made in relation to group activity among employees. Employer policies should not be so sweeping that they prohibit the kinds of activity protected by federal labor law.
Which of the following is an accurate statement regarding the amount of punitive damages in a Title VII action?
An employer is not liable for punitive damages as long as it made good-faith efforts to comply with federal law.
Which of the following is true of an independent contractor?
An independent contractor is not an employee.
Which of the following is an accurate statement regarding whether a principal can be held liable for the torts of an independent contractor?
An individual who hires an independent contractor cannot be liable for the contractor's tortious actions under the doctrine of respondeat superior.
Which of the following is an incorrect statement about bankruptcy remedies?
Bankruptcy remedies are available to individuals, but not partnerships or corporations.
Identify a recognized disadvantage to the franchisor of starting a franchise.
Can become liable for the franchise if the franchisor exerts too much control
The ______ Act states that spammers may not send e-mail messages containing false information or provide consumers with no option concerning whether they receive messages in the future.
Can-Spam
The main types of bankruptcy relief that are available through bankruptcy include all but which of the following?
Chapter 21 of the Bankruptcy Code
The ______ ensures that employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental, or optical benefits can pay to continue receiving benefits for themselves and their dependents under the employer's policy.
Consolidated Omnibus Budget Reconciliation Act
Which of the following is an inaccurate statement about the criminal and tort liabilities of corporate officers and directors?
Corporate directors cannot be held personally responsible for the torts and crimes of other employees within the organization.
Which of the following is a true statement about whether corporations can sue and/or be sued by others?
Corporations can sue or be sued by others.
Which of the following is an accurate statement about corporations and due process rights?
Corporations have due process rights under both the Fifth and the Fourteenth Amendments to the U.S. Constitution.
Which of the following is an accurate statement about the personal malpractice liability of dentists, doctors, or other professionals who practice in a professional corporation?
Courts sometimes impose personal malpractice liability on those who practice in a professional corporation.
Various ways to end an agency relationship include all but which of the following?
Creation of a subrogation interest
Which of the following is not a way in which an agency relationship can be terminated by the acts of the parties involved?
Declaratory judgment
Which of the following is an incorrect statement about the rights and duties of directors as managers of a corporation?
Directors exclusively determine the value of their company's stock in the secondary market.
Which of the following is a recognized disadvantage of a partnership?
Each partner has personal liability for all business losses.
The ______ is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in such plans.
Employee Retirement Income Security Act
Which of the following statements are true about the hiring of foreign workers by employers? (Check all that apply.)
Employers are required to confirm "work authorization," which means that every new employee, at the time of hire, must fill out Form I-9. Employers who fail to comply with the laws regarding the hiring of foreign workers risk criminal and civil sanctions.
The __________ defines sexual harassment as "unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature."
Equal Employment Opportunity Commission
______ powers typically granted to corporations by state incorporation statutes include the power to make contracts, the power to borrow and lend money, the power to make charitable donations, and the power to establish rules for managing the corporation.
Express
In his first 100 days, President Donald Trump signed a bill that repealed Internet privacy rules established by the _____ in 2016. Multiple choice question.
FCC
Which of the following is one of the primary federal statutes that address product safety?
FFDCA
If the ______ finds that deception is pervasive in an industry, it can recommend rule-making.
FTC
A consumer owes $3,000 on his credit card and has not made monthly payments for six months. The case is referred to a collection agency. Next, the agency contacts the consumer's acquaintances, telling them about the consumer's debt in an effort to pressure the consumer into paying the debt. This type of debt-collecting behavior is prohibited by the ______.
Fair Debt Collection Practices Act
Proposed changes to the _____ intend to increase the minimum salary required for overtime exemption for administrative and professional employees in the United States from $23,660 a year to $47,476.
Fair Labor Standards Act
The ______ mandates that employees who work more than 40 hours in a week be paid no less than one and one-half times their regular wage for all hours beyond 40 worked in a given week.
Fair Labor Standards Act
Which of the following is not a recognized advantage of a partnership?
Financial capital can be raised through stock issuance.
Which of the following is not a legal option available to the Securities and Exchange Commission if it uncovers a potential violation of the Securities Act of 1933?
Force the defendant into bankruptcy.
Which of the following is an accurate statement regarding the Federal Trade Commission (FTC) and the consumer protection laws related to funeral home services?
Funeral homes may not require customers to buy certain funeral goods and services as a condition for receiving other funeral goods and services.
Identify a recognized disadvantage to the franchisee of starting a franchise.
Has little to no creative control over the business
In the ______ case, the U.S. Supreme Court established three criteria necessary for determining whether an instrument is a security.
Howey
In the context of tort liability and agency relationships, which of the following is an incorrect statement?
If an agent commits a tort that injures a third party, his or her principal cannot be held liable for the agent's actions.
In the context of tort liability and agency relationships, which of the following is an accurate statement?
If an employee tortiously injures a third party and the employer controls the employee's behavior, the employer can be held liable for the tort.
n the context of tort liability and agency relationships, which of the following is an accurate statement?
If an employee tortiously injures a third party and the employer controls the employee's behavior, the employer can be held liable for the tort.
In the context of agency, identify a true statement about the relationship between express authority and implied authority.
Implied authority cannot conflict with any express authority.
Identify a recognized disadvantage of a partnership.
In most cases, each partner has personal liability for the business losses of another partner.
Identify a recognized advantage to the franchisor of starting a franchise.
Increased income from the franchise
Which of the following is not a recognized advantage of a partnership?
Individual partners have immunity from personal liability for all business losses.
Which of the following are true about the impact of the repealing of Internet privacy rules established by the Federal Communications Commission in 2016?
Internet service providers may continue to collect data like geolocation, browsing history, and other important personal information. Internet service providers can sell data to online advertising agencies.
Which of the following is an accurate statement about a petition filed as part of Chapter 7 liquidation proceedings
It may be voluntary or involuntary.
Which of the following is not a way in which an agency relationship can be terminated by the acts of the parties involved?
Judgment notwithstanding the verdict
Which of the following is not a key reason for the rapid acceptance of limited liability companies (LLCs)?
LLCs require profits and losses to be allocated in proportion to ownership interests.
Which of the following is not an appropriate term to include in the name of a corporation?
LLP
A ______ is a security interest formed when a debtor uses borrowed money from the secured party to a security agreement to buy the collateral.
PMSI
Which of the following is an accurate statement regarding whether an employer can discriminate against an employee who smokes?
Many states have passed laws preventing companies from terminating workers who will not or are unable to quit smoking.
Which of the following is an incorrect statement regarding whether a principal can be held liable if an agent misrepresents himself or herself to a third party?
Misrepresentation liability depends on whether the agent was acting in the scope of employment.
The ______ is the administrative agency that interprets and enforces the National Labor Relations Act.
National Labor Relations Board
The ______ requires every employer to "furnish to each of his employees .... employment ... free from recognized hazards that are likely to cause death or serious physical harm."
Occupational Safety and Health Act
Under the ______ Crime Control and Safe Streets Act of ______, employers cannot listen to the private telephone conversations of employees or disclose the contents of these conversations.
Omnibus; 1968
The ______ expanded the definition of discrimination based on gender to include discrimination based on pregnancy.
Pregnancy Discrimination Act
In the context of a secured transaction, which of the following is an inaccurate statement regarding priority disputes among creditors who claim interest in the same collateral?
Priority disputes between creditors who claim interest in the same collateral are most likely to arise when a debtor is diagnosed with an illness.
The ______ provides a "safe harbor" from liability for publicly held issuers who make financial forecasts as long as the forecasts are "accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statement."
Private Securities Litigation Reform Act
The avenues for creating agency include a form of authority that attaches to that type of agency. Which of the following is not one of these avenues?
Quasi-agency
The avenues for creating agency include a form of authority that attaches to that type of agency. Which of the following is not one of these avenues? Multiple choice question.
Quasi-agency
In the context of exemptions under the Securities Act of 1933, which of the following is an incorrect statement regarding Regulation A? Multiple choice question.
Regulation A is much more burdensome than the full registration process.
Which of the following is not a recognized advantage to the franchisee of starting a franchise?
Required compliance with the franchisor's exacting standards
______ is a Latin phrase meaning "let the superior speak."
Respondeat superior
Some transactions are exempt from the registration requirements of the ______ when exchanged in certain ways.
Securities Act of 1933
The U.S. Congress passed the ______ in reaction to the mistrust of securities transactions before the Great Depression.
Securities Act of 1933
The ______ regulates how companies issue corporate securities, while the ______ oversees the purchase and sale of securities.
Securities Act of 1933; Securities Exchange Act of 1934
______ Rule ______ requires corporations using shelf registrations to keep information in the original registration accurate and up to date.
Securities and Exchange Commission; 415
Which of the following is an accurate statement regarding shareholder liability for the actions of a defective corporation?
Shareholders may be personally liable for a defective corporation's actions.
Which of the following is an accurate statement about the duties of corporate shareholders?
Shareholders typically owe few fiduciary duties to the corporation.
Which of the following is an inaccurate statement about publicly held corporations?
Shareholders wishing to sell their shares of stock in publicly held corporations usually face many transfer restrictions.
Which of the following is an incorrect statement about shareholder transferability of corporate shares? Multiple choice question.
Shareholders' shares are only transferable upon their death.
generally governs corporations.
State law
Which of the following is not a way to terminate an agency relationship?
Strict equity liability
An agent has the authority to buy antiques on behalf of his or her principal. The principal dies without the knowledge of the agent, and the agent continues to purchase items on behalf of the principal. Which of the following is an accurate statement regarding whether the transactions after the principal's death are binding on the principal's estate?
Such transactions are not binding on the principal's estate.
Which of the following is not a way corporations can be classified?
T corporations
The ______ forbids phone solicitation using an automatic telephone dialing system or a prerecorded voice and also makes it illegal to transmit advertisements by fax unless the recipient agrees to the fax transmission. Multiple choice question.
Telephone Consumer Protection Act
During which decade was the Federal Unemployment Tax Act passed?
The 1930s
Which of the following is an inaccurate statement regarding the Fair Credit Billing Act (FCBA)?
The FCBA is enforced by the Interstate Commerce Commission.
Which of the following is an accurate statement regarding the collective bargaining process?
The National Labor Relations Act requires both labor and management to bargain in good faith regarding the terms and conditions of employment.
Which of the following is not an accurate statement regarding the collective bargaining process?
The National Labor Relations Board can order labor and management to reach an agreement.
Which of the following is an accurate statement regarding government regulation of the sales of securities by affiliates?
The Securities Act of 1933 restricts sales of securities by affiliates much more than sales by nonaffiliates.
Which of the following statements are true about the current laws that deal with discrimination based on marriage? (Check all that apply.)
The Supreme Court has struck down section 2 of DOMA, effectively ending the unequal treatment of the marriages of same-sex couples. Under the Due Process and Equal Protection Clauses of the Fourteenth Amendment, same-sex couples have a fundamental right to marry.
Which of the following applies to a franchise relationship?
The Uniform Commercial Code
What does it mean if court grants an order of relief?
The bankruptcy petition is dismissed
Which of the following is not a duty of partners to one another?
The beneficiary duty to the other partners
To become a secured party, a creditor must gain a security interest in the collateral of a debtor. Which of the following is not a criterion for creating the security interest?
The debtor is financially solvent because his or her tangible assets exceed his or her debts in value.
Under which of the following situations does an employer not have to offer Consolidated Omnibus Budget Reconciliation Act coverage to an employee who has lost his or her job?
The employee is fired for gross misconduct.
According to the Truth in Lending Act, if a consumer unknowingly purchases a damaged good using a credit card, the consumer is not obligated to pay for the good if all but which of the following requirements are met?
The item was purchased for commercial purposes.
Which of the following is an accurate statement about the life of a corporation?
The life of a corporation does not end when the lives of its owners end.
Which of the following is an accurate statement regarding the performance of a duty a person is already legally obligated to do?
The performance of a duty a person is already legally obligated to do is not good consideration for a present contract.
Which of the following is required for agency by ratification? Multiple choice question.
The principal must accept the agent's unauthorized act.
Which of the following is not a type of business relationship to which agency laws are relevant?
The principal-steward relationship
Which of the following is not one of the three types of business relationships to which agency laws are relevant?
The principal-third-party beneficiary relationship
Which of the following is not recognized by courts as a factor when making decisions about an agency relationship's liability to third parties?
The relative bargaining power of the principal and the agent
According to the Uniform Commercial Code (UCC), a security interest in collateral that has been perfected in one state will generally transfer to another state for a period of four months from the date that the property is brought into the state. Which of the following statements is true about the reperfection of the security interest after the four-month period?
The secured party may reperfect the interest in the new state.
Which of the following is an incorrect statement regarding a secured party's right to take possession of a debtor's collateral?
The secured party must act with a court order to take possession of the collateral.
Which of the following is an inaccurate statement regarding who prevails in a priority dispute between a secured creditor and an unsecured creditor who claim interest in the same collateral?
The secured party's priority over the unsecured party depends on the perfection of the secured interest.
A creditor must gain a security interest in the collateral of a debtor to become a secured party. Which of the following is not a criterion for creating the security interest?
The secured property is sufficient in value to cover all debts owed by the party.
The Mail or Telephone Order Merchandise Rule of 1993 established all but which of the following key guidelines regarding mail and telephone orders?
The seller must pay the total cost of shipping and handling associated with a mail or telephone order.
Which of the following is one of a third party's options when an agent misrepresents himself or herself to the third party?
The third party can affirm the contract and sue the principal to recover damages.
Which of the following is not typically included in a limited liability company's (LLC's) articles of organization?
The work experience of the shareholders
True or false: When a party to a security agreement perfects its interest in the collateral, it is legally protecting its claim to the collateral.
This is true. When a party to a security agreement perfects its interest in the collateral, it is legally protecting its claim to the collateral. Perfection is a series of legal steps a secured party takes to protect its right in the collateral from other creditors who want their debts satisfied through the same collateral.
Which of the following is not the principal's duty to the agent?
To be loyal to the agent
______ is any type of financial instrument identified in the Securities Act of 1933.
a security
The principal's duties to the agent include all but which of the following?
To obey the agent
Which of the following is not an agent's duty to a principal?
To ratify the principal
According to __________, a partnership is a voluntary association between two or more persons who co-own a business for profit.
UPA
Which of the following is an incorrect statement regarding unemployment compensation?
Under the Federal Unemployment Tax Act (FUTA), employers pay taxes to the federal government.
Which of the following is not identified by courts as a factor when making decisions about an agency relationship's liability to third parties?
Whether the agent was compensated based on industry standards
According to the Truth in Lending Act, if your credit card is stolen and someone makes unauthorized purchases on your account, your liability for those charges cannot exceed ______ per card if prompt notification of the theft is made to the credit card company.
a debt collector who regularly attempts to collect debts on behalf of others
qualifies for bankruptcy relief under Chapter 12 of the Bankruptcy code. Multiple choice question.
a family farmer
Which of the following is not a recognized defense to liability under the Equal Pay Act? Multiple choice question.
a gender classification system
The Fair Credit Reporting Act imposes a duty on credit reporting agencies to ensure ______.
accurate credit reporting
Express authority of an agent is often referred to as the agent's ______ authority.
actual
An agency relationship terminates if either the principal or agent becomes insane. Some states have modified this law so that unless the person has been ______ insane, the agency contract still exists.
adjudicated
Workers' compensation laws use a(n) ______ procedure rather than a(n) ______ procedure.
administrative; court
A(n) ______ is a person who controls, is controlled by, or is in common control with the issuer of a security.
affiliate
Officers act as ______ of a corporation.
agents
An acquiring corporation, or ______, can buy any or all of another corporation's voting shares. Through such a stock purchase, the purchasing corporation gains control of the selling corporation in a corporate takeover.
aggressor
Expressed agency is also known as agency by
agreement
Under the Employee Retirement Income Security Act, employers must provide individuals in pension and health plans with all but which of the following?
an employer-sponsored insurance program covering potential plan losses
According to the requirements of the Securities and Exchange Commission, which of the following is not typically included in a registration statement?
an explanation of how the fair market value of the securities offered for sale is determined
In the context of financial instruments, which of the following is not an example of a security?
any contract
If a third party reasonably believes on the basis of a principal's actions that an agent has authority to represent the principal, the principal must uphold any agreements made with the agent, who has ______ authority.
apparent
In the context of the legal process of incorporation, generally, an incorporator's only duty is to sign the ______.
articles of incorporation
An employee who is not employed under a contract for a set duration or under a collective bargaining agreement is referred to as a(n) ______ employee.
at will
Which of the following is not a valid defense to a claim under Title VII of the Civil Rights Act?
at will employment
A car dealership is an example of a ______.
distributorship
A criterion necessary for the ______ of a creditor's security interest in the collateral of a debtor is the debtor's rights in the collateral.
attachment
In a priority dispute between two secured creditors who claim interest in the same collateral, if neither party has perfected its security interest, the party that ______ its security interest first will have the first claim to the collateral.
attatched
In bankruptcy proceedings, trustees are usually ______.
attorneys in private practice who specialize in bankruptcy law
A corporation that does business in states other than the state in which it is incorporated must obtain a certificate of ______ in each state in which it does business
authority
The secured party to a transaction ______ interest in proceeds.
automatically has an
Under Chapter 7 liquidation proceedings, ______ are not considered debtors.
banks
On June 26, 2015, in a historic 5-4 ruling, the Supreme Court of the United States found _____.
bans on marriage equality to be unconstitutional
In a ______, the consideration for each promise is a return promise.
bilateral contract
The ______ defense allows an employer to discriminate when doing so is necessary for the performance of a job.
bona fide occupational qualification
The ______ defense allows an employer to discriminate when doing so is necessary for the performance of a job. Multiple choice question.
bona fide occupational qualification
Which of the following is a defense to a claim under Title VII of the Civil Rights Act?
bona fide occupational qualification
In the context of corporate financing, debt securities are ______.
bonds
In the context of contractual liability to third parties for authorized acts of an agent, if a principal is undisclosed, ______.
both the principal and the agent are liable
According to the Cooling-Off Rule, how must a salesperson notify the consumer that a sales transaction may be canceled?
both verbally and in writing
Corporate officers are in a contractual relationship with a corporation, and if they are removed from their positions in violation of the terms of the contract, the corporation may be liable for ______.
breach of contract
If an administrative law judge decides that a company has violated the law, the Federal Trade Commission issues a(n) ______ requiring the company to stop the illegal behavior.
cease-and-desist order
.A stock ______ is a document that serves as a stockholder's proof of ownership in a corporation.
certificate
In a ______-style business operation, the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
chain
In ______ corporations, the transfer of stock is usually restricted so that shareholders can choose the corporation's other shareholders.
closely held
S corporations are a particular type of ______ corporation.
closely held
Susan purchases a car and pledges the car as security for a loan. Her right to possess the car as long as she satisfies the terms of the loan is known as a debtor's right in the ______.
collateral
The Wagner Act of 1935 provides for ______.
collective bargaining
According to the Uniform Commercial Code (UCC), a consumer good is a good used or bought for use primarily for all but which of the following purposes?
commercial goods
Agency relationships are ______ relationships.
consensual
According to the Uniform Commercial Code (UCC), the value given by a secure party to a security agreement between a creditor and a debtor is ______.
consideration
In return for performing a contract obligation, a person will receive
consideration
A(n) ______ trust is an equitable trust imposed on a person who wrongfully obtains or holds legal right to property he or she should not possess.
constructive
When a principal enacts a(n) ______ trust, the court rules that the agent is merely holding the property or goods in trust for the principal, granting the principal legal right or possession.
constructive
Which of the following is not a way corporations can be classified?
constructive or symbolic
A ______ law is a statute or administrative rule serving to protect consumer interests.
consumer
The Uniform Commercial Code (UCC) Section 9-102(23) defines a(n) ______ good as a good used or bought for use primarily for personal, family, or household purposes.
consumer
A ______ is a business organization in which members usually pool their resources to gain some kind of competitive advantage in the market.
cooperative
A ______ is an organization formed by individuals to market products. Multiple choice question.
cooperative
Rules and regulations that govern a corporation's internal management are known as ______.
corporate bylaws
In the context of Chapter 7 liquidation proceedings, ______ are not eligible for Chapter 7 relief.
credit unions
Most bankruptcy cases share a set of procedures, or certain actions that must be taken in every bankruptcy case. Which of the following is not one of these actions?
criminal proceedings against the debtor
Which of the following is not an example of instruments?
customer lists
In the context of corporate financing, ______ securities represent loans to a corporation.
debt
The main liability that shareholders of the corporation face is liability for the ______ of the company.
debt
A creditor is an entity to whom a(n) ______ owes money.
debtor
A secured transaction is a transaction in which the payment of a debt is guaranteed by personal property the ______ owns.
debtor
In the context of liquidation proceedings, a voluntary Chapter 7 petition is filed by a
debtor
order of security agreemenr
decurrity agreement, debtors signature, sp gives value, right to collateral, attatchemnet
When a debtor fails to make payments on a loan, the debtor ______ the loan.
defaults on
If the incorporator or promoters of a corporation make an error or omission during the incorporation process, courts may rule that the organization is not a corporation. In such a case, the organization is a ______.
defective corporation
Although ______ are in charge of major policy decisions, ______ run the day-to-day business of a corporation.
directors; officers
When a principal is classified as a ______ principal, a third party is aware that an agent is making an agreement on behalf of the principal.
disclosed
Which of the following can constitute a hostile work environment in violation of Title VII of the Civil Rights Act of 1964?
discrimination based on race
Which of the following can constitute a hostile work environment in violation of Title VII of the Civil Rights Act of 1964?
discrimination based on religion
A ______ is a franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in a(n) ______ territory. Multiple choice question.
distributorship; exclusive
disadvantage of coporation
double taxation
A consumer law is ______.
either a statute or an administrative rule
An agency relationship is formed ______.
either by an informal oral agreement or by a formal written contract
Whenever an employer hires an employee to perform some sort of physical service, the parties have created an ______ relationship.
employer-employee
Participants in a joint venture usually share profits and losses of the joint venture ______.
equally
Once a debtor files a voluntary liquidation petition, the debtor's prepetition assets form the bankruptcy ______.
estate
The assets that are collected from a debtor who files for bankruptcy are collectively known as the bankruptcy ______.
estate
A corporation by ______ is a defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.
estoppel
Apparent agency is also known as agency by
estoppel
If corporations act beyond their ______ and ______ powers, the act is called an ultra vires act.
express; implied
The most common type of agency is ______.
expressed agency
A debtor who defaults cannot object to the secured party's retention of the collateral.
false
The wool Products Labeling Act of 1939 is a ______ law.
federal
Because all individuals within a corporation depend on one another, the law requires directors, officers, and shareholders to perform certain duties within the business. These duties to the corporation are called ______ duties.
fiduciary
If a majority shareholder owns such a significant portion of a corporation's stock that he or she essentially controls the firm, the majority shareholder has a ______ duty to act with care and loyalty in selling his or her shares because the sale of his or her shares will shift control of the company to another individual.
fiduciary
When an agent agrees to act on behalf of a principal, the agent is a(n) ______, a person in a position of trust and confidence and, as such, owes certain duties to the principal.
fiduciary
Partners must, in good faith, work for the benefit of their partnership and refrain from taking any kind of action that would undermine the partnership. This is known as the partners' ______.
fiduciary duty
If a debtor defaults on a loan, an unsecured creditor may ______. Multiple choice question.
file suit and seek a judgment in the amount of the debt
Priority disputes among creditors who claim interest in the same collateral are most likely to arise when a debtor ______.
files for bankruptcy
In the context of a security agreement, a ______ statement is a document that lists the names and addresses of all parties involved in the transaction, a description of the collateral, and the signature of the debtor.
financing
Before the maturity date, corporations usually pay bondholders ______ interest payments on a scheduled basis.
fixed dollar
A ______ is a business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.
franchise
A ______ is the owner of a trade name or trademark in a franchise.
franchisor
In response to ______ discrimination, Congress passed the Equal Credit Opportunity Act.
gender
Disparate-______ cases arise when a plaintiff attempts to establish that although an employer's policy or practice appears to apply to everyone equally, its actual effect is that it disproportionately limits employment opportunities for a protected class.
impact
An agent's _______ authority is derived from an agent's express authority and consists of what is reasonably necessary for carrying out the agent's grant of express authority.
implied
States give powers to corporations through state incorporation statutes and through each corporation's articles of ______.
incorporation
States give powers to corporations through state incorporation statutes and through each corporation's articles of ______.
incorporations
A(n) ______ is a person who is hired to perform a task for another but who is not the other's employee. Multiple choice question.
independent contractor
According to Section 16(a) of the Securities Exchange Act of 1934, all but which of the following parties are considered statutory insiders?
independent contractors
When a company employee or executive uses material inside information to make a profit, she or he is engaging in ______.
insider trading
A(n) ______ is a writing that serves as evidence of the right to payment of money.
instrument
Disparate treatment is ______ discrimination.
intentional
Blue-sky laws regulate the offering and sale of purely ______ securities.
interstate
The Investment Company Act defines a(n) ______ investing, reinvesting, or trading in securities.
investment company as any entity that is engaged primarily in the business of
If an independent contractor engages in extremely hazardous activities, such as blasting operations, for his or her principal, the principal ______.
is responsible for any damages caused by the independent contractor
Whereas the Securities Act of 1933 regulates the ______ of securities, the Securities Exchange Act of 1934 regulates the ______ of securities.
issuance; resale
According to the Securities Act of 1933, only ______ and underwriters are not exempt from registering resales of securities.
issuers
A ______ is a relationship between two or more persons or corporations created for a specific business undertaking.
joint venture
What is the legal reason for holding corporate directors and officers personally responsible for the torts and crimes of employees within their organization?
lack of adequate supervision
An administrative rule has the effect of ______.
law
Which of the following is a recognized part of creating a corporation?
legal activities necessary for incorporation
A(n) ______ is a(n) ______ form of business organization that many people see as combining the most advantageous features of partnerships and corporations.
limited liability company (LLC); unincorporated
A shareholder's liability for corporate actions is ______.
limited to his or her corporate investment
is not valid consideration for contract enforcement. Multiple choice question.
past consideration
Bait-and-switch advertising is a deceptive practice in which a seller advertises a ______ price for an item, generally ______ to the consumer, and then pushes the consumer to buy a ______ expensive item.
low; unavailable; more
According to the U.S. Supreme Court, sexual harassment includes all but which of the following?
making employment decisions related to an individual dependent on the individual's race
In addition to being a theory of tort, ______ can establish liability for insider trading.
misappropriation
______ states have adopted at least part of the Revised Model Business Corporation Act
more than 25
The Real Estate Settlement Procedures Act requires the disclosure of information regarding ______ loans to buyers.
mortgage
Deciding what form of business to create is on of the ______ important decisions a business makes
most
In a priority dispute between two secured creditors who claim interest in the same collateral, the party that ______ its interest first will have priority over the collateral. Multiple choice question.
perfected
In the context of contractual liability to third parties for unauthorized acts of an agent on behalf of a principal, if a third party believes the agent is mistaken about his or her authority, ______.
neither the principal nor the agent is liable
A termination statement is an amendment to a financing statement. It provides that a debtor has ______ obligation to the secured party to a transaction. Multiple choice question.
no further
A limited liability company (LLC) is formed by filing articles of ______ in the state in which members want to establish their LLC.
organization
Major groups of individuals within a corporation include all but which of the following?
partners
A written agreement that creates a partnership is called the articles of
partnership
Syndicates are usually considered a type of joint venture; thus, they are almost always governed by ______ law.
partnership
A limited liability company (LLC) combines the tax advantages and management flexibility of a ______ with the limited liability of a(n) ______.
partnership; corporation
A limited liability company (LLC) combines the tax advantages and management flexibility of a ______ with the limited liability of a(n) ______.
partnership;corporation
A limited liability company is usually taxed as a _____ and its member have _____ liability.
partnership;limited
______ is a series of legal steps a secured party to a security agreement takes to protect its right in the collateral from other creditors who want their debts satisfied through the same collateral.
perfection
Once the secured party to a transaction ______ its interest in collateral, it is effective until the collateral is sold, exchanged, or transferred.
perfects
Puffing is ______.
permissible
Which of the following is a major type of stock?
preferred
The Federal Trade Commission is an independent federal agency with five commissioners appointed by the ______ and confirmed by the ______.
president; Senate
The doctrine of respondeat superior is used in the context of the ______ relationship.
principal-agent
When an employer hires an employee to enter into contracts on behalf of the employer, a ______ relationship typically exists.
principal-agent
he ______ relationship is the most basic type of agency relationship. Multiple choice question.
principal-agent
Agency is generally defined as a relationship between a(n) ______ and a(n) ______.
principal; agent
In the context of a secured transaction, ____ refer to something that is exchanged for collateral.
proceeds
According to the U.S. Supreme Court's Howey test, which of the following is not a criterion for determining whether an instrument is a security?.
profit gained primarily or substantially from one's own efforts
For a(n) ______ to be enforced by the courts, there must be consideration
promise
A ______ is a writing signed by a shareholder that authorizes the individual named in the writing to exercise the shareholder's votes at a shareholders' meeting.
proxy
A ______ is a corporation created by government to help administer law.
public corporation
The Federal Deposit Insurance Corporation (FDIC) is an example of a ______.
public corporation
A(n) ______ security interest is formed when a debtor uses borrowed money from the secured party to a security agreement to buy the collateral.
purchase-money
A family farmer
qualifies for bankruptcy relief under Chapter 12 of the Bankruptcy code.
Which of the following is a distinct form of sexual harassment?
quid pro quo
The BFOQ defense cannot apply to which of the following forms of discrimination?
race
The Americans with Disabilities Act requires employers to make a ______ accommodation to the known disability of an otherwise qualified person unless the accommodation would pose a(n) ______ on the employer's business.
reasonable; undue hardship
A prospectus is a written document that contains most of the information that appears in a ______.
registration statement
Pursuant to the Securities Act of 1933, any issuer of securities must file a written ______ and a ______ with the Securities and Exchange Commission.
registration statement; prospectus
The prefiling period in the filing process ends when an issuer files the ______ statement and ______ with the Securities and Exchange Commission. Multiple choice question.
registration; prospectus
A person obtains a loan from a bank and uses his or her boat as collateral. The person sells the boat because he or she needs more money. In this scenario, the bank's secured interest in the boat ______.
remains in effect
In the context of Chapter 11 of the Bankruptcy Code, a(n) ______ plan is a contract between a debtor and his or her creditors.
reorganization
If an investor acquired securities through an intrastate issue or a limited offering, they are ______ securities.
restricted
If the Equal Employment Opportunity Commission decides not to sue for an alleged employer violation of Title VII of the Civil Rights Act, it notifies the plaintiff of his or her right to file an action and issues the plaintiff a ______.
right-to-sue letter
Specialized forms of business organization include all but which of the following?
s partnerships
A(n) ______ interest is an interest in personal property or fixtures which secures payment or performance of an obligation.
secured
B buys a television from Company C. Company C retains a security interest in the television until B pays off the balance of the purchase price. In this scenario, Company C is the _____.
secured party
In the context of a corporate takeover, a(n) ______ offer is a takeover-resistance strategy in which the target corporation offers to buy its shareholders' stock.
self-tender
Which of the following is a distinct form of sexual harassment?
sexual harassment that involves the creation of a hostile work environment
adopt a set of corporate bylaws at the first organizational meeting of a corporation
shareholders
Because corporations are legal entities distinct from their ______, corporations are ______ for corporate actions.
shareholders; liable
______ registrations permit certain qualified issuers to register securities that they will sell off the shelf on a delayed or continuous basis in the future. Multiple choice question.
shelf
A ______ proprietorship is a business in which one person is in control of the management and profits.
sole
If a person decides to go into business on his or her own, he or she is creating a
sole proprietorship
The prefiling period in the filing process begins when an issuer ______.
starts to think about issuing securities
Each individual corporation's charter creates a contract between that corporation and the ______.
state
______ securities laws are often referred to as blue-sky laws.
state
incorporation statutes establish the requirements for corporate formation.
state
Which of the following is not a factor business owners consider when selecting a state for incorporation?
state laws governing copyrights
Which of the following is not a factor business owners consider when selecting a state for incorporation?
state laws governing trademarks and patents
Because corporations are creatures of the ______, they have only those powers ______ grant(s) them.
states;states
Pursuant to the Securities Exchange Act of 1934, all ______ must file a report detailing their ownership and trading of the corporation's securities.
statutory insiders
Shareholders seeking to make a profit in for-profit corporations purchase the ______ issued by the corporations.
stock
The avenues for creating agency include a form of authority that attaches to that type of agency. Which of the following is not part of these avenues?
symbolic
An investment group that comes together for the explicit purpose of financing a specific large project is called a ______.
syndicate
A corporate ______ is the purchase of one corporation's stock by another corporation as a means of gaining control of the selling corporation. Multiple choice question.
takeover
To initiate a stock purchase, the aggressor must appeal directly to the shareholders of the corporation it hopes to buy, known as the ______ corporation.
target
If the principal or the agent becomes insane, the agency relationship
terminates
A(n) ______ statement is an amendment to a financing statement.
termination
The merit defense to claims under Title VII of the Civil Rights Act is usually raised when hiring or promotion decisions are partially based on ______.
test scores
In the context of contractual liability to third parties for authorized acts of an agent, if a principal is disclosed, ______.
the principal is liable but the agent is not
During which decade was Title VII of the Civil Rights Act amended by the Pregnancy Discrimination Act?
the 1980s
Which of the following is one of the primary federal statutes that address product safety?
the Consumer Product Safety Act
Which law simplifies the Food and Drug Administration's process of approving generic drugs?
the Drug-Price Competition and Patent-Term Restoration Act
Which federal administrative agency enforces the Telephone Consumer Protection Act?
the Federal Communications Commission
By virtue of the Telemarketing and Consumer Fraud and Abuse Prevention Act, Congress asked which federal administrative agency to define "deceptive and abusive" telemarketing practices and required the agency to create and enforce rules governing telemarketing that would prohibit such practices?
the Federal Trade Commission
Major pieces of federal legislation regarding labor-management relations in the United States are governed by all except which of the following?
the Humphrey-Agnew Act
Which of the following is a crucial act that regulates securities transactions?
the Securities Act of 1933
Which of the following is not a federal discrimination law?
the Uniform Arbitration Act of 1955
According to ______, a security interest in collateral that has been perfected in one state will generally transfer to another state for a period of four months from the date that the property is brought into the state.
the Uniform Commercial Code (UCC)
Which of the following is not a federal discrimination law governing employers?
the Uniform Prudent Investor Act of 1992
In the context of contractual liability to third parties for unauthorized acts of an agent on behalf of a principal, if a third party believed that the agent has authority, ______.
the agent is liable but the principal is not
the context of a secured transaction, which of the following will not affect the secured party's perfected interest in collateral?
the collateral is used
For a written security agreement between a creditor and a debtor to be valid, it must describe ______ accurately and in detail.
the collateral of the debtor
Agency by implied authority is based on
the conduct of the parties involved
Which of the following is not a responsibility of the Securities and Exchange Commission?
the determination of the fair market value of any stock issued on stock exchanges
Which of the following is one of the two primary fiduciary duties directors and officers owe to the corporation?
the duty of care
Amendment to the U.S. Constitution protects corporations from unreasonable searches and seizures.
the fourth
According to the requirements of the Securities and Exchange Commission, which of the following is not typically included in a registration statement? Multiple choice question.
the investor's projected return on investment (ROI) in one-year, three-year, and five-year extrapolations
Which of the following is not a responsibility of the Securities and Exchange Commission?
the passage of regulations regarding the proper administration, management, and operation of Ponzi schemes
Which of the following is not an express power state incorporation statutes typically grant to a corporation?
the power to be immune from corporate taxation
Generally, shareholders can freely transfer ______.
their corporate shares
The Credit Card Fraud Act states that it is unlawful to use the account number of another's credit card ______.
to perpetrate fraud
In the context of Chapter 11 of the Bankruptcy Code, the goal of a plan to reorganize a debtor's financial affairs is ______.
to rehabilitate the debtor while preserving the debtor's assets for the creditors
A franchisee is a person who sells goods or services under a ______ or ______ based on a franchise agreement.
trade name; trademark
A franchisor is the owner of a ______ or ______ in a franchise.
trade name; trademark
The three major credit reporting agencies are Experian, Equifax and ________.
transunion
Disparate ______ under Title VII is a form of discrimination in which an employee is fired or denied a promotion based on membership in a protected class.
treatment
Alimony and child support debts are not subject to a bankruptcy stay
true
True or false: The Department of Labor, National Labor Relations Board, and Equal Employment Opportunity Commission have each created joint employer doctrines for firms that depend on third-party contractors that no longer safeguard these businesses from employment-related liability issues arising from third-party contractors.
true
A business trust is a business organization governed by a group of ______, who operate the trust for the ______.
trustees; beneficiaries
Corporations commit ______ acts most frequently when they create contracts outside the scope of their powers.
ultra vires
According to Rule 506 of Securities and Exchange Commission's Regulation D, if a firm issues securities to ______ investors, it must believe that they have the knowledge to evaluate the ______ associated with the security.
unaccredited; risk
The Credit Card Fraud Act states that it is unlawful to possess ______ credit card.
unauthorized
According to the Securities Act of 1933, only issuers and ______ are not exempt from registering resales of securities.
underwriters
Disparate-impact cases are also referred to as ______-discrimination cases.
unintentional
If a security does not qualify as an unregistered unrestricted security, an issuer can nevertheless avoid registering the security by making certain exempt transactions. Such securities are ______ securities. Multiple choice question.
unregistered restricted
Securities issued by governments, including municipal, state, and federal governments, are known as ______ securities.
unregistered unrestricted
For a security agreement between a creditor and a debtor to be valid, the secured party must give ______. Multiple choice question.
value
A partnership is a ______ association between two or more persons who co-own a business for ______.
voluntary; profit
Typically, shareholders meet once every ______.
year
