Blaw final #1

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Administrative agencies are created when: (A) a problem requires expertise and supervision (B) voters demand one (C) Congress wants support from a group of voters (D) a problem is too small for Congress to consider itself (E) a problem arises very quickly

(A) a problem requires expertise and supervision

The ____ prevents unnecessary lawsuits by giving the agency the full chance to get the decision right. (A) exhaustion doctrine (B) standing doctrine (C) judicial doctrine (D) judicial review doctrine (E) substantive determination doctrine

(A) exhaustion doctrine

The 1946 case Securities and Exchange Commission v. Howey, the Supreme Court established a test to determine when an investment is a security for the purposes of federal regulation. The test has: (A) four basic elements (B) convoluted and difficult to understand terms (C) no practical applications (D) one basic element (E) two basic elements

(A) four basic elements

Five procedural requirements for judicial review of a challenge to an agency decision are: (A) jurisdiction, reviewability, standing, ripeness and exhaustion (B) jurisdiction, standing, ripeness, exhaustion, and appealability (C) reviewability, ripeness, exhaustion, diversity of action, and venue (D) ripeness, exhaustion, jurisdiction, reviewability, and discretion (E) none of the other choices

(A) jurisdiction, reviewability, standing, ripeness and exhaustion

Section 11 of the 1933 Securities Act imposes civil liability for: (A) misleading statements in securities registration material (B) poorly run businesses (C) unsuccessful investment schemes (D) late registration of securities (E) unreasonable risk in investment

(A) misleading statements in securities registration material

Under the Equal Credit Opportunity Act, lenders can: (A) not discriminate on religion even if people of that religion frequently default on their loans (B) discriminate against persons who receive welfare (C) discriminate against persons because of race (D) not discriminate against persons with low income (E) not discriminate by charging different debtors different interest rates

(A) not discriminate on religion even if people of that religion frequently default on their loans

Jones works at an investment firm that helps corporations merge with other companies. Because of her work, she knows that two clients of her firm are going to merge. She also knows that when the announcement is made, the price of stock in these companies will jump. She buys stock in the companies before the announcement. She is: (A) probably guilty of insider trading (B) not guilty of insider trading under the Dirks case because she is outside of the companies (C) not guilty of insider trading under the Chiarella case because she owes no fiduciary duty to the companies (D) probably not guilty of insider trading because, under SEC Rule 10b-5, one must be a director or manager of the firms in question for the law to apply (E) none of the other choices

(A) probably guilty of insider trading

You are on the subway in New York when you overhear two people you do not know talking about an upcoming merger, news not yet public. They seem to know their stuff. If you buy stock based on this information, and profit when the information turns out true, you have: (A) profited, but are an outsider and so your actions are probably not illegal (B) engaged in insider trading that is probably illegal (C) not engaged in insider trading because you are not a corporate officer (D) not engaged in insider trading because once you overheard the information it was public (E) violated the Insider Trading Sanctions Act and could face criminal charges

(A) profited, but are an outsider and so your actions are probably not illegal

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations: (A) that credit card receipts may not show more than the last five numbers of a card (B) that credit card receipts must show the expiration date of a card (C) that credit card receipts must show the name of the holder of a card (D) that credit transaction records must be maintained for at least two years (E) all of the other choices

(A) that credit card receipts may not show more than the last five numbers of a card

Credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age is prohibited by: (A) the Equal Credit Opportunity Act (B) the Fair and Just Credit Opportunity Act (C) the Fair Credit Opportunity Act (D) the Justified Credit Opportunity Act (E) the Good-faith Credit Act

(A) the Equal Credit Opportunity Act

Insider trading is: (A) the buying or selling of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock (B) only the buying of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock (C) only the selling of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock (D) stock trades inside a one-year time period by directors (E) none of the other choices

(A) the buying or selling of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock

The Federal Trade Commission investigates: (A) unfair and deceptive practices (B) tax evasion practices (C) profitable practices (D) legal practices (E) drug development

(A) unfair and deceptive practices

Most securities are issued by firms that can use a quicker registration process. These are: (A) well-known seasoned issuers that have issued at least $1 billion in securities previously (B) private placement specialists registered with the SEC (C) self-registration offering brokerages that work only with accredited investors (D) Regulation D offering specialist firms that are accredited by the SEC (E) none of the other choices; there is no such process

(A) well-known seasoned issuers that have issued at least $1 billion in securities previously

Under the Fair Credit Reporting Act, a consumer reporting agency (credit bureau) must: (A) allow consumers to see credit ratings of businesses (B) allow consumers to see information about them that results in their being denied credit (C) allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person (D) allow consumers to see credit ratings of businesses and allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person (E) allow consumers to see information about them that results in their being denied credit and allow any citizen (or business), without discrimination, to obtain a copy of a consumer report on any person

(B) allow consumers to see information about them that results in their being denied credit

A federal agency collects documents in its law enforcement activities. Except for trade secrets, these documents are: (A) always secret, under the Privacy Act, unless used in court (B) available to the public under the Freedom of Information Act, unless they concerns information about individuals protected by the Privacy Act (C) available to the public under the Government in the Sunshine Act, unless it concerns information about individuals protected by the Privacy Act (D) all available to the public under the Federal Sunshine Act (E) none of the other choices

(B) available to the public under the Freedom of Information Act, unless they concerns information about individuals protected by the Privacy Act

Administrative agencies may issue subpoenas to obtain business documents that agencies need for law enforcement. Subpoenas may: (A) only be issued when there is good cause to believe that a violation of the law has occurred (B) be used to get confidential information (C) only be issued by a federal district judge (D) be used to obtain any information agencies want and no reasons need be given (E) none of the other choices

(B) be used to get confidential information

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except: (A) the race of the applicant (B) if the applicant has a checking account (C) if the applicant receives public assistance (D) the marital status of the applicant (E) all of the other choices are legitimate concerns

(B) if the applicant has a checking account

Under the Fair Debt Collection Practices Act, which of the following information does not have to be provided to the debtor in writing by a debt collector within five days of the initial communication? (A) the amount of the debt (B) if the creditor will sue if the debtor refuses to pay (C) a statement that unless the consumer disputes the validity of the debt within 30 days, it will be assumed valid (D) the name of the creditor to whom the debt is owed (E) all of the other choices must be stated

(B) if the creditor will sue if the debtor refuses to pay

Someone who does not have a fiduciary duty to the shareholders of a company and uses inside information to make a profit with company stocks: (A) is probably guilty of insider trading (B) is probably not guilty of insider trading (C) can only be guilty of insider trading if he shares the information with others (D) is guilty of insider trading if he makes more than $50,000 in profits (E) none of the other choices are correct

(B) is probably not guilty of insider trading

Equal credit opportunity refers to the requirement that creditors: (A) must disclose all relevant terms in credit transactions (B) must not use sex or race to determine a person's creditworthiness (C) must not use abusive debt collection techniques (D) all of the other specific choices are correct (E) none of the other specific choices are correct

(B) must not use sex or race to determine a person's creditworthiness

The Securities Act of 1933 regulates: (A) private offerings of securities (B) public offerings of securities when they are first sold (C) corporations with more than $100,000 in securities (D) banks (E) none of the other choices are correct

(B) public offerings of securities when they are first sold

The Fair Debt Collection Practices Act prohibits the following by debt collectors except: (A) harassing, late-night phone calls (B) sending repeated letters demanding payment (C) publication of a list of debts owed (D) threatening violence if a debt is not paid (E) all of the other choices are prohibited

(B) sending repeated letters demanding payment

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act: (A) race (B) sexual orientation (C) age (D) religion (E) all of the other specific choices are prohibited bases

(B) sexual orientation

There is no right to trial by jury in a hearing at an administrative agency to determine if the law has been violated because: (A) administrative agencies are not subject to the Constitution (B) there is no criminal or common-law cause (C) Congress is above the Constitution and Congress gives agencies their authority (D) the Supreme Court is not involved (E) none of the other choices are correct

(B) there is no criminal or common-law cause

Katherine loses her ATM card while visiting her boyfriend in Boston. She doesn't realize it until she gets home to New Jersey after a week in Boston. She immediately notifies the bank that she lost her card 7 days ago. How much is Katherine liable for in losses? (A) $0 (B) $50 (C) $500 (D) $1000 (E) $10,000

The securities registration process requires all the following information to be provided to prospective investors except: (A) the security issuer's finances (B) the purpose of the offering (C) SEC analysis of the offering (D) financial statements by certified public accountants (E) all of the other choices are required

The Fair Debt Collection Practices Act restricts: (A) creditors attempting to sell credit card services (B) to ten the number of times a debt collector may contact a consumer in a 60 day period when attempting to collect a debt (C) abusive techniques used by debt collection agencies (D) the use of 800 number phone lines by collection agencies (E) all of the other choices

The Truth-in-Lending Act covers only certain classes of consumer credit transactions. For example, the: (A) debtor must be a business organization (B) creditor may not be a business organization (C) creditor must be in the business of regularly granting credit (D) debtor must be a business organization and the creditor must be in the business of regularly granting credit (E) creditor may not be a business organization and the creditor must be in the business of regularly granting credit

The Fair Debt Collection Practices Act applies to: (A) all creditors attempting to collect debts (B) merchants attempting to collect debts from their customers, but not to financial institutions (C) debt collection agencies (D) merchants attempting to collect debts from their customers, but not to financial institutions, and to debt collection agencies (E) all creditors attempting to collect debts and merchants attempting to collect debts from their customers, but not to financial institutions, and to debt collection agencies

In SEC v. Howey, the Supreme Court: (A) defined a security as an investment of money in a common enterprise with the expectations of profits being earned by the efforts of the investor (B) was concerned with penalizing a case of fraud of investors in a large stock scam; it resulted in federal securities legislation being passed (C) defined a security as an investment of money in a common enterprise with the expectation of profits being earned by the efforts of other persons (D) held the sale of plots of land in a development to be a security (E) none of the other choices

(C) defined a security as an investment of money in a common enterprise with the expectation of profits being earned by the efforts of other persons

The Truth-in-Lending Act: (A) is intended to help married women establish credit history (B) is intended to eliminate credit discrimination on the basis of sex, race, color, religion, and other characteristics set forth in the Act (C) encourages competition in financing consumer credit (D) restricts interest rates creditors may charge consumers (E) all of the other choices

Most securities are issued by well-known seasoned issuers who do not have the right to: (A) file registration statements the day they announce a new offering (B) use a free-writing prospectus that is continuously updated on a website (C) sell without SEC notification (D) use shelf registration and sell a security over several years (E) none of the other choices; there are no such special privileges

In Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., where the EPA's "bubble rule" for measuring pollution from an industrial facility was challenged, the Supreme Court held that: (A) since Congress directly addressed the issue of the bubble policy it was not up to the EPA whether or not to use it (B) since Congress directly addressed the issue of the bubble policy it was up to the EPA whether or not to use it (C) since Congress did not directly address the issue of the bubble policy so it was up to the EPA whether or not to use it (D) since the EPA is not subject to regulation by Congress, it can have whatever policy it wants (E) since Congress gave the EPA special permission to enact whatever policy it wants, the EPA can have the bubble policy if it wants

(C) since Congress did not directly address the issue of the bubble policy so it was up to the EPA whether or not to use it

In a hearing at an administrative agency, to determine if the law has been violated: (A) defendants have the right to a jury trial (B) defendants may have a jury trial if the agency agrees to one (C) there is no right to a jury trial (D) there is no right to jury trials except in cases involving agency common law (E) there is no right to jury trials in regulatory cases unless there is a possibility of a death sentence

What is not an element in the Supreme Court's SEC v. Howey definition of securities: (A) an investment of money (B) in a common enterprise (C) where profits are earned (D) enterprise is managed by others (E) all of the other choices are part of the definition

Most securities are issued by well-known seasoned issuers who have the right to: (A) file registration statements the day they announce a new offering (B) use a free-writing prospectus that is continuously updated on a website (C) use shelf registration and sell a security over several years (D) all of the other specific choices (E) none of the other choices; there is no such process

(D) all of the other specific choices

Which of the following is considered harassing, deceptive or unfair under the Fair Debt Collection Practice Act: (A) threats of violence (B) threats of arrest (C) obscene language (D) all of the other specific choices are correct (E) none of the other specific choices are correct

(D) all of the other specific choices are correct

When an administrative agency engages in rulemaking, it must first publish the proposed legislative rule, then it must: (A) conduct a trial-like hearing (B) examine witnesses from both sides of the issue (C) have open oral testimony by all interested parties (D) allow written commentaries by interested parties (E) all of the other choices

(D) allow written commentaries by interested parties

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) a role in managerial control (D) an investment of money in a common enterprise (E) an investment of money in a common enterprise with a role in managerial control

(D) an investment of money in a common enterprise

The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may: (A) not be sued for insider trading since he did not engage in trades; his relatives can be sued (B) not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company (C) not be sued for insider trading under the Supreme Court rule in the Dirks case (D) be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret (E) be sued only if his employment contract or contract with the Navy prohibits trading

(D) be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret

Which of these does not violate the Fair Debt Collection Practices Act? The debt collector: (A) claims to be an attorney when talking to the debtor (B) publishes a list of actual debtors in the newspaper (C) threatens to beat up the debtor (D) calls every day to remind the debtor of the debt it owes to the collector (E) all of the other choices are illegal

(D) calls every day to remind the debtor of the debt it owes to the collector

Fair credit reporting refers to the requirement that creditors: (A) must disclose all relevant terms in credit transactions (B) must not use sex or race to determine a person's creditworthiness (C) must not use abusive debt collection techniques (D) credit reporting agencies must provide accurate information in consumer reports (E) none of the other specific choices are correct

(D) credit reporting agencies must provide accurate information in consumer reports

The Fair Debt Collection Practices Act applies to: (A) all creditors attempting to collect debts (B) all corporations attempting to collect debts (C) merchants attempting to collect debts from their customers, but not to financial institutions (D) debt collection agencies (E) all of the other choices

(D) debt collection agencies

The Federal Trade Commission regulates: (A) deceptive business practices (B) false advertising claims (C) highly risky stock deals (D) deceptive business practices and false advertising claims (E) deceptive business practices and false advertising claims and highly risky stock deals

(D) deceptive business practices and false advertising claims

Insider trading is: (A) legal if no profit is made (B) legal if the insider gets an outsider to buy or sell (C) illegal because insiders are strictly prohibited from stock trading under SEC Rule 10b-5 (D) illegal when insiders trade based on information they have a fiduciary duty not to trade on (E) illegal because employment contracts for insiders prohibit trading in the securities issued by their employer

(D) illegal when insiders trade based on information they have a fiduciary duty not to trade on

Chiarella worked at a company that printed financial documents. In one documents, he read confidential information that allowed him to buy stock and make a nice profit because of his knowledge. When sued by the SEC for insider trading, the Supreme Court found Chiarella: (A) guilty of violating Rule 10(b)-5 because he failed in his duty to disclose relevant information (B) guilty of violating Rule 10(b)-5 because he traded in securities based on inside information (C) guilty of violating Section 16(b) because he engaged in short-swing trading for profit (D) not guilty of insider trading because he had no fiduciary duty not to use the information (E) none of the other choices

(D) not guilty of insider trading because he had no fiduciary duty not to use the information

Administrative agencies enforce regulations by doing which of the following: (A) requiring businesses to self-report (B) direct observation by agency personnel (C) direct observation by Congressional staff (D) requiring businesses to self-report and direct observation by agency personnel (E) requiring businesses to self-report and direct observation by agency personnel and direct observation by Congressional staff

(D) requiring businesses to self-report and direct observation by agency personnel

The primary source(s) of administrative law include(s): (A) the Legislative Delegation Act (B) the Administrative Procedures Act (C) court decisions reviewing agency decisions (D) the Administrative Procedures Act and court decisions reviewing agency decisions (E) the Administrative Procedures Act and court decisions reviewing agency decisions and the Legislative Delegation Act

(D) the Administrative Procedures Act and court decisions reviewing agency decisions

A major enforcement agency of the Fair Credit Billing Act is: (A) the Department of Justice (B) the Office of the Attorney General (C) the Treasury Department (D) the Federal Trade Commission (E) there is no government enforcement; all suits are private

(D) the Federal Trade Commission

Under the Fair Credit Reporting Act, consumer bureaus may sell consumer credit reports to: (A) anyone willing to pay for one (B) any person or business who signs an affidavit attesting to legitimate use of the information (C) any person or business who signs an affidavit attesting to legitimate use of the information, knowing that the fact of the purchase is public record (D) those needing reports for legitimate business needs (E) firms that comply with the Truth-in-Lending Act's disclosure rules

(D) those needing reports for legitimate business needs

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations: (A) that credit card receipts may not show more than the last five numbers of a card (B) that consumers must be allowed to correct bad information on their credit reports (C) that consumer information must be properly disposed of (D) that credit card details may not be printed on credit receipts (E) all of the other choices

(E) all of the other choices

Which of these does not violate the Fair Debt Collection Practices Act? The debt collector: (A) claims to be an attorney when talking to the debtor (B) publishes a list of actual debtors in the newspaper (C) threatens to beat up the debtor (D) calls the debtor's employer to discuss the matter (E) all of the other choices are illegal

(E) all of the other choices are illegal

What is not an element in the Supreme Court's SEC v. Howey definition of securities: (A) an investment of money (B) in a common enterprise (C) with an expectation of profits (D) enterprise is managed by others (E) all of the other choices are part of the definition

(E) all of the other choices are part of the definition

The Fair Debt Collection Practices Act prohibits the following by debt collectors except: (A) harassing, late-night phone calls (B) discussing a debt with neighbors (C) publication of a list of debts owed (D) threatening violence if a debt is not paid (E) all of the other choices are prohibited

(E) all of the other choices are prohibited

If a creditor is found to have violated the Equal Credit Opportunity Act, he is liable for: (A) actual damages (B) punitive damages up to $10,000 (C) attorney's fees (D) court costs (E) all of the other specific choices are correct