Business Law 1

The current federal minimum wage under the FLSA is ______ per hour.

$7.25

Under the 1934 insiders must report any transactions in their securities within ______ following the end of the month in which the transaction occurs.

10 days

The ______ requires the issuer of securities ______ with the SEC prior to their offer or sale to the public.

1933 Act, to register the securities

Under the Patient Protection and Affordable Care Act, young adults up to the age of ______ can stay on their parent's insurance plans.

26

Currently, (insert a number) states have security statutes that contain liability provisions.

50

Under the 1934 Act, an issuer must register a class of equity securities with at least ______ shareholders and the securities must be traded in ______.

500; interstate commerce

Under the ADA, the definition of disability includes which of the following? (Check all that apply)

A person is being regarded as having an impairment,A physical or mental impairment that substantially limits a life activity ,A record of such an impairment

The Uniform Securities Act of 1985 includes which of the following? (Check all that apply)

A requirement for the registration of securities,Antifraud provisions,A requirement for brokerâ€"dealer registration

______ authority can either be express or implied.

Actual

The Patient Protection and Affordable Care Act does which of the following? (Check all that apply)

Allows small business to get tax credits under certain circumstances ,Allows states to mandate certain types of coverage ,Prohibits people from being denied health insurance due to a preexisting condition

A principal may be bound on a contract by an agent with which of the following types of authority? (Check all that apply)

Apparent authority,ratification,Actual authority

Under the ADEA, employers who discriminate against an employee who is 40 years of age or older can use a(n) ______.

BFOQ exemption

In the 1980s, the United States Supreme Court reduced the ability of employees to bring discrimination suits, prompting the U.S. Congress to pass the ______.

Civil Rights Act of 1991

Section 7 of the ________ prohibits any corporation engaged in commerce from acquiring all or part of the stock or assets of any other corporation engaged in commerce when the effect would tend to create a monopoly.

Clayton Act

Section 3 of the ________ makes it illegal to lease or sell ________ or to fix a price for commodities.

Clayton Act, commodities

______ notice is sufficient for persons who may be aware of the agency but not formally dealt with the agent.

Constructive

The organization designed to help consumers make wise decisions regarding financial products and services is the ______.

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau was created as part of the ______.

Dodd-Frank Wall Street Reform and Consumer Protection Act

An agent owes a principal all of the following duties: ______. (Check all that apply)

Duty of Care,Duty to Communicate,Duty of Loyalty

Click all of the following that would generally apply to an independent contractor.

Employers control the results but not the means,Contractors are paid by the job, not by the hour.,Contractors work according to their own methods.

True or false: Agency relationships may only be formed by a contractual agreement.

FALSE

True or false: An agent may not make a contract in her own name while being employed as an agent.

FALSE

True or false: Historically, it has been relatively easy to convict a principal for the crimes committed by her agent within the scope of employment.

FALSE

True or false: The Federal Debt Collection Practices Act prohibits harassment of debtors by retail stores collecting on an unpaid consumer bill.

FALSE

The increased use of the Internet has caused the ______ to exercise its power to regulate ______ in cyberspace.

Federal Trade Commission; unfair and deceptive practices

The main reason(s) that early trades such as shoemakers and weavers went on strike were ______. (Check all that apply)

For higher wages,For shorter hours

About how many states recognize at least one of the major exceptions to the employment-at-will doctrine?

Forty (40)

Failure to comply with ______ standards might lead to a _______ action against a certified accountant if the client suffers damages.

GAAP or GAAS; negligence

In accounting, what does the acronym GAAP represent?

Generally Accepted Accounting Principles

The Public Company Accounting Oversight Board has the authority to do all but which of the following?

Incarcerate offenders

Which of the following is a reason a plaintiff might prefer to use a cause of action based on state rather than federal law?

It is hard to prove the scienter that is required in a federal cause of action.

What exists when a firm controls a very high percentage share of the relevant market?

Monopoly power

How many states have raised the minimum wage above the federal level?

More than one-half

The right of workers to organize and collectively bargain came from the ______ Act.

National Labor Relations

The National Labor Relations Act established the ______.

National Labor Relations Board

The first federal safety statute that applied to all types of businesses was called the ______ Act.

Occupational Safety and Health

The Occupational Safety and Health Act is administered by the ______.

Occupational Safety and Health Administration

ERISA established the ______ to provide insurance for plans whose total assets are insufficient to pay promised benefits.

Pension Benefit Guaranty Corporation

Which of the following is at the center of most challenges to an employer's right to test for drug use?

Privacy

Most state securities statutes regulate which of the following activities? (Check all that apply)

Proof of brokers' financial responsibility,Disclosure by dealers of pertinent facts about securities being sold,Disclosure by dealers of avoidance of fraudulent securities

The Sarbanes-Oxley Act established the ______ Board under the Securities and Exchange Commission (SEC) to oversee the audit of ______ companies and protect the interests of investors and further the public interest in disseminating ______ reports.

Public Company Accounting Oversight; public; independent audit

Which of the following are types of sexual harassment prohibited by Title VII? (Check all that apply)

Quid pro quo,Hostile work environment

Title VII of the Civil Rights Act of 1964 prohibits discrimination based on which of the following? (Check all that apply)

Race,Sex ,Religion

Scienter could be proven by circumstances. For example, which of the following might indicate the accountant acted with scienter? (Check all that apply)

Recognizing embezzlement but failing to notify a client,A reliance on last year's figures when preparing a current financial statement

If the EEOC brings a case to federal court and discrimination is found, the court can order which of the following? (Check all that apply)

Reinstatement to a job ,Back pay and benefits

Generally, Section 2(a) of the _______ Act prohibits discrimination in price between different purchasers of commodities of like grade and quality.

Robinson-Patman

Under the 1934 Act, securities need not be registered for _____ to apply, and it applies to both securities exchanges as well as ______ transactions.

Rule 10b-5, face-to-face

Although the ______ possesses the authority to temporarily or permanently bar an accountant from practicing before it, the final order may be appealed to the _______.

SEC; federal court of appeals

Dodd-Frank is designed to complement provisions in the ______ Act that require lawyers to report securities violations.

Sarbanes-Oxley

Which provision of the Sherman Act provides the following: A contract is any agreement, express or implied, between two or more persons to restrain competition; a combination is a continuing partnership in restraint of trade?

Section 1

When a person offers or sells unregistered securities and nonexempt securities under the 1933 Act, he is liable under ______ of the Act.

Section 12(1)

Which section of the 1933 Act imposes liability on any person who has violated the timing, manner, and content restrictions on offers and sales of new issues?

Section 12(1)

If the defendant is a small newspaper company and has monopoly power because it is the only survivor in a market that can support only one firm of its kind: _______.

Section 2 is not violated

If a seller provided a favored customer with a display case or a demonstration kit that was not provided to a competing customer, she would be in violation of ________.

Section2(d) of the Robinson-Patman Act

In response to a public outcry, Congress responded by passing the ________ in 1890, and later supplemented it with the _______, and the Robinsonâ€"Patman Act.

Sherman Act, Clayton Act

Which of the following organizations regulate(s) accountants' right to advertise their services to the public?

State licensing boards

True or false: A distributor typically purchases her products directly from the manufacturer and bears the risk of no sale or nonpayment by the ultimate purchaser.

TRUE

True or false: In a rule of reason trial the court endeavors to balance the anticompetitive effects of the defendants’ acts against any competitive justifications for their behavior.

TRUE

True or false: In the Ultramares case, Judge Cardozo refused to hold the accounting firm liable for negligence based on the rationale that if liability for negligence exists, a thoughtless slip or blunder, the failure to detect a theft or forgery beneath the cover of deceptive entries, may expose accountants to a liability in an indeterminate amount for an indeterminate time to an indeterminate class.

TRUE

True or false: Manufacturers may run afoul of Section 1 if they require their dealers to agree to refrain from selling to customers outside their assigned territories.

TRUE

True or false: Product safety standards are issued by the Consumer Product Safety Commission (CPSC) when an unreasonable risk of injury is present and the standard is reasonably necessary to prevent or reduce that risk.

TRUE

A creditor is obligated to disclose the aggregate cost of leasing consumer goods pursuant to which of the following laws?

The Consumer Leasing Act

Which of the following laws established the Consumer Product Safety Commission?

The Consumer Product Safety Act

Title VII of the Civil Rights Act is enforced by the which of the following organization(s)?

The Equal Employment Opportunity Commission

Which of the following enforce(s) the Age Discrimination in Employment Act?

The Equal Employment Opportunity Commission

Which of the following organizations can initiate an action in response to a discrimination complaint on its own?

The Equal Employment Opportunity Commission

Procedures to allow a consumer to dispute a credit card statement are found in which of the following laws?

The Fair Credit Billing Act

A new national system of credit card fraud detection was created by which of the following laws?

The Fair and Accurate Credit Transactions Act

The Fair Debt Collection Practices Act is enforced by which of the following?

The Federal Trade Commission

Which of the following enforces most of the federal consumer protection laws and regulations?

The Federal Trade Commission

Which of the following organizations adopted the holder in due course rule?

The Federal Trade Commission

Which of the following is the \grandfather\" of consumer protection legislation?"

The Federal Trade Commission Act

Courts have interpreted which amendment to the United States Constitution to provide a right to privacy from unreasonable search and seizures?

The Fourth Amendment

Which of the following laws requires financial institutions to provide for the protection of their consumers' nonpublic personal information?

The Gramm-Leach-Bliley Act

Which of the following organizations adopted the Uniform Securities Act of 1985?

The National Conference of Commissioners on Uniform State Laws

The Consumer Leasing Act is an amendment to which of the following laws?

The Truth in Lending Act

The requirement that the interest rate for a credit transaction be stated clearly in terms of an annual percentage rate comes which of the following?

The Truth in Lending Act

Which of the following laws was designed to furnish consumers with a better opportunity to shop for credit among merchants, finance companies, credit unions, and banks?

The Truth in Lending Act

Employees who qualify may take family and medical leave for which of the following? (Check all that apply)

The adoption of a child ,The birth of a child

Which of the following executives are required by Section 906 of the Sarbanes-Oxley Act to certify by written statement the accuracy of the company's periodic financial reports required under the 1934 Act?

The chief financial officer,The chief executive officer

Which of the following are goals of the Family and Medical Leave Act? (Check all that apply)

To provide job security to those with serious heath conditions,To make the workforce more accommodating to women ,To provide leave for family-related health issues

The rationale for the application of the privity doctrine in negligence suits against accountants began with which of the following cases?

Ultramares v. Touche

The Civil Rights Act of 1991 extended Title VII coverage to ______.

United States citizens working overseas for U.S. companies

Which of the following are generally examined under rule of reason analysis.?

Vertical restraints

The United States Congress amended the _________ Act by enacting the Taft Hartley Act, presently known as the Labor-Management Relations Act.

Wagner

Suppose WINMART sells its own “WINMART-brand†products to a chain store for less than it sells its own brand-name products to the chain’s competitors. Is WINMART liable under Robinson-Patman?

Yes, if the only difference between the products is their label.

Under Section 16(b) of the 1934 Act, an \insider\" can include any of the following. (Check all that apply)"

a director of a corporation with registered equity shares,an owner of 10% of a corporation's registered equity shares,an officer of a corporation with registered equity shares

A principal owes all the following duties to an agent except: _______.

a duty of loyalty

All of the following are duties an agent owes her principal except: ______.

a duty to compensate

Under the fellow-servant rule, an injured employee could be denied recovery based on ______ negligence.

a fellow worker's

Exceptions to the employment-at-will doctrine include ______. (Check all that apply)

a firing against public policy,a firing in violation of the implied covenant of good faith and fair dealing ,a firing in violation of implied terms of the employment contract

The ADA protects ______.

a qualified individual with a disability from discrimination

Manufacturers or distributors are required to notify the Consumer Product Safety Commission if they have reason to know that their products present ______.

a substantial product hazard

Under the 1934 Act, the illegal practice of ______ occurs when a person simultaneously buys and sells the same stock in order to stimulate substantial trading activity and thereby affect the price of the security.

a wash sale

Employment laws increased during the Industrial Revolution because ______.

accidents and industrial diseases were killing workers

An agent has a duty to _________ for any secret profits, bribes, or kickbacks that she received from third persons during and within the scope of the agency.

account for funds and property

An agent acting within her ______ authority is not in violation of her agency duty to the principal.

actual

An agent's ______ authority may be either express or implied.

actual

Even though an agent may not have ______ authority, she may have _______ authority if the principal does - or fails to do - something that causes a third party to reasonably believe the agent can do business for the principal.

actual, apparent

An accountant who violates federal securities acts may be subjected to a(n) _______ conducted by the Securities and Exchange Commission (SEC).

administrative hearing

Even though there are federal protections like the ADEA, NLRA and Title VII, a majority of employees are still unprotected ______.

against arbitrary and unfair firing

A court may find that a(n) ______ relationship exists, even if the parties did not ______ to create one.

agency, intend

Generally, a person can do anything through a(n) ______ she could legally do personally.

agent

The words or actions of a(n) alone cannot create apparent authority.

agent

An agency arises when a(n) ______ acts for the benefit of and under the direction of a(n) ______.

agent, principal

Agency law focuses on the relations between principals and a(n) ______ and ______ persons.

agent, third

The Consumer Product Safety Commission regulates the safety of ______.

all consumer products except those regulated by other agencies

Section 16(b) of the 1934 Act requires that ______ file individual statements disclosing their holdings in any shares of a publicly traded company.

all insiders

With the employment-at-will doctrine, an employee is ______.

allowed to quit at will

An imminently hazardous product is one that poses ______.

an immediate and unreasonable risk of death, illness, or injury

The primary focus of U.S. antitrust enforcement is to protect American consumers from: _______.

anticompetitive conduct

International businesses must be more and more alert to the reach of another nation's ________ as they expand their operations around the world.

antitrust laws

The Federal Trade Commission requires any sales contract that includes a promissory note to contain a notice providing that ______.

any holder of the consumer credit contract is subject to all claims and defenses that the debtor could assert against the seller

Courts have held that an accountant has a duty to disclose the unreliability of an earlier report she prepared to ______.

anyone she specifically knew was relying on the report

A principal may be bound on a contract by an agent with _________ who appeared to have been given authority by a principal to enter into the contract.

apparent authority

An agent has _____ authority when the principal does something that causes a third party to ______ the agent has authority to conduct business for the principal.

apparent, reasonably believe

Communications between accountants and their clients _______.

are not privileged, unlike communications between attorneys and their clients

Distributors generally ______ agents and, as a result, manufacturers are ______ likely to be legally responsible for their contracts, torts, or crimes.

are not; less

Most state blue-sky statutes grant broad power to investigate fraud to the ______ or his appointee as securities administrator.

attorney general

If no time or event of termination is specified, the agency _______ the result for which the agency was created has been accomplished.

automatically ends when

Per se activities are ________, while the legality of a rule of reason action can be determined only after examining the behavior’s _________.

automatically illegal, ultimate effect on competition

The duty of loyalty requires that the agent: ______. (Check the correct answers)

avoid any conflict of interests ,avoid the appearance of impropriety,give full disclosure of any conflict to the principal

The Equal Credit Opportunity Act applies to ______.

banks, finance companies, retail and department stores, and credit card companies

Generally, an agent who fails to follow his principal's instructions will: ________.

be liable for any loss incurred by the principal

Any act that the principal could have authorized at the time the act was done may ______.

be ratified

Required disclosures that protect consumers under the Telemarketing and Consumer Fraud and Abuse Prevention Act must be made to a consumer ______ the customer pays for the goods or services.

before

Workers' compensation laws represent a compromise ______.

between employee and employer interests

State securities laws are frequently referred to as ______ because the early statutes were designed to protect investors from promoters and security salespersons who offered stock in companies organized to pursue visionary schemes.

blue-sky laws

Discrimination on the basis of religion, sex, or national origin are permitted based on a ______.

bona fide occupational qualification

If a consumer product is imminently hazardous, the Consumer Product Safety Commission may ______.

bring suit in federal district court to eliminate the dangers presented by it,order the private party to repair or replace the product,order that notice of the problem be given to those affected by it

Even after a deposit/agent dies, banks continue to have the authority to act as the depositor's agent for ______ for a limited period of time.

check-cashing purposes

By providing ________ evidence of an actual agreement, ______ factors tend to ensure the existence of an actual agreement.

circumstantial; plus

In order to prevail on a claim of _______ based on inferences from consciously parallel behavior, plaintiffs must show that certain ______ also exist.

collusion, plus factors

As opposed to a distributor, agents often possess the power to contract on behalf of their principals.

commercial

All of the following distinguish commercial agents from distributors and other non-agents; ______. (click all that apply)

commercial agents are usually compensated by commissions,commercial agents do not maintain an inventory,commercial agents seldom bear any financial loss

Section 3 of the Clayton Act applies only to _______, so tie-in, exclusive dealing, and requirements contracts that involve _______ must be attacked under Section 1 of the Sherman Act.

commodities, services

If duties are not expressly given in an agency contract, they will be implied in the law.

common

Recovery by a creditor was possible based on _______ on the theory that the creditor was a third-party beneficiary of the contract employing the accountant.

common law

The National Labor Relations Board's major functions are to ______. (Check all that apply)

conduct elections to determine employee interest in a union ,hear charges of unfair labor practices

In the early 19th century, if workers went on strike, employers were able to get employees prosecuted on ______ charges.

conspiracy

The objective of most early statutes governing the employment relationship in the United States was to ______.

control and restrict workers

A partnership or a(n) may serve as an agent.

corporation

Even in the absence of an express agreement, the law imposes a duty of care on accountants engaged to provide accounting services to the public, which includes all of the following except professional ______.

costs

Although there is no ________ liability for Clayton Act violations, ________ damages are available to private plaintiffs.

criminal; treble

Courts have created exceptions to the employment-at-will rules in an attempt to ______.

curb employer abuses

The Labor-Management Relations Act was passed to ______.

curb excessive union power

An agency can be terminated by law if any of the following events occurs: _______. (check all that apply)

death of principal,insanity of agent,illegality of the agency

The Federal Debt Collection Practices Act prohibits harassment of debtors by ______.

debt collection agencies that collect for creditors other than themselves

Recently, there has been a great deal of litigation regarding whether it is an unfair labor practice for an employer to avoid its contract by ______. (Check all that apply)

declaring bankruptcy ,moving work to a non-union site,closing a plant

Some states have passed legislation that limits or prohibits employers from ______. (Check all that apply)

demanding access to social media ,asking for an employee username on a social media account,asking for an employee password to a social media account

An agency is automatically terminated by law if the subject matter of the agency is lost or: ______.

destroyed

Under ______ liability the principal basically is liable because of her own tortious conduct.

direct

A principal can be ______ liable when she is ______ in the hiring and/or the supervision of the agent.

directly, negligent

The Gramm-Leach-Bliley Act mandates that financial institutions ______.

disclose their policies and practices regarding the disclosure of customers' personal information to their affiliates

If a salesman comes to your door offering to sell products from ABC Corp, legally that principal is: ______.

disclosed

Usually, a person who is dealing with an agent of a(n) principal is aware of the fact and knows for whom the agent is acting.

disclosed

Usually, a person who is dealing with an agent of a(n) ______ is aware of the fact and knows for whom the agent is acting.

disclosed principal

The 1934 Act is primarily concerned about _______ information to investors.

disclosing material

The 1933 Act requires issuers to make necessary ________ when they are selling securities to the public.

disclosures

Section 2(d) of the Robinson-Patman Act prohibits sellers from making __________ to competing customers for the same services.

discriminatory payments

If an employer does not hire a woman based solely on the fact that she is a woman, this is known as ______.

disparate treatment

A person who represents that she is making a contract on behalf of a principal but who has no authority to do so: ______.

does not bind the principal

If an agent acts outside her scope of authority and makes unauthorized advances of her own funds, which in turn causes the principal to suffer a loss, the principal: ______.

does not have a duty to indemnify the agent

A person can have the capacity to act as an agent, even though she: _______.

does not have the legal capacity to contract

If a defendant acquires a(n) _______ through superior products and service or other demonstrations of business acumen, the intent to monopolize will not be found.

dominant market position

A principal owes all the following duties to an agent: _______. (check all that apply)

duty to keep accounts,duty to reimburse,duty to compensate

If an agent has received any money or property from the principal, she has a(n) ________ or to ________ for her inability to do so if requested by the principal.

duty to return the property, communicate clearly,duty to return the money, give an accounting

Today, revised criminal codes have made it ______ to impose criminal liability on principals if the agent’s criminal behavior occurred: ______.

easier, within the scope of employment

Generally, ______ may terminate the agency ______.

either the principal or the agent; even if there is no contractual right to do so

In worker's compensation, ______ damages cannot be recovered. (Check all that apply)

emotional ,punitive

Reasons that employers started implementing polygraph tests include ______. (Check all that apply)

employee theft ,liability for employee actions

The Genetic Information Nondiscrimination Act prohibits ______ from collecting the genetic information of employees or applicants. (Check all that apply)

employment agencies ,employers,unions

Recent changes in the common law doctrine of ______ may impose new duties on an employer.

employment at will

The ______ doctrine allows employers to hire or fire an employee for any reason as long as it is not discriminatory.

employment-at-will

In 2008, the United States Congress amended the ADA with the Americans with Disability Amendments Act to ______. (Check all that apply)

ensure that the ADA is broadly interpreted ,overturn United States Supreme Court decisions that limited the ADA's coverage

State licensing boards regulate the _______ conduct of the accounting profession and may suspend or ______ an accountant’s license to practice in that state if she commits illegal or unethical acts.

ethical; revoke

Plus factors include all of the following: ________. (Check the correct answers)

evidence that the defendant acted contrary to its interests,evidence implying a traditional conspiracy,evidence that the defendant had a motive to enter into a price-fixing conspiracy

The main basis of liability for accountants is the duty to ______.

exercise ordinary skill and care

Under the 1934 Act, Section 18 imposes liability on any person responsible for a(n) ________ statement of _______ in any document filed with the SEC.

false or misleading, material fact

When an accountant acts with scienter, she knows either the statements are ______, or makes them with ________ for the truth.

false; reckless disregard

Under GINA, genetic information includes ______ history.

family medical

Many statutes require you to keep records for reporting to ______. (Check all that apply)

federal agencies,state agencies

A federal statue extends the attorney-client privilege to a(n) \ ________†who is authorized to practice before the Internal Revenue Service (IRS)."

federally authorized tax practitioner

To avoid liability under Robinson-Patman, sellers may lawfully provide discriminatory payments or services of: _______. (Check the two correct answers)

flexible plans that enables various classes of buyers, large chains or small independents, to participate.,notifying customers of the availability of such services and distributing them according to some rational basis

The Age Discrimination in Employment Act protects persons who are ______ years of age and older.

forty (40)

Section 9 of the 1934 Act prohibits deceptive practices that may be used to ______.

fraudulently stimulate market activity

The Fair and Accurate Credit Transactions Act requires

free annual credit reports to consumers who request them.,merchants to delete all but he last five digits of a card number on store receipts.

If the agent is acting without compensation as a(n) agent, the standard of care will be much less than if she was compensated.

gratuitous

At common law, the privity doctrine limited recovery to those parties who ______.

had a direct contractual relationship with the accountant

Under Section 11(a) of the 1933 Federal Securities Act, a purchaser of securities can recover even if she ______.

had not read the defective registration statement

If an agent acting within her scope of authority makes advances of her own funds on a principal's behalf, the principal: ______.

has a duty to reimburse the agent

The Labor-Management Reporting and Disclosure Act requires a union to ______. (Check all that apply)

have a constitution and by laws ,set forth a bill of rights for union members

Under the ADAA, when determining whether an impairment limits a major life activity, employers must make these decisions without tools like ________________ unless it meets a business necessity

hearing aids,glasses,prosthetic limbs

Affirmative action plans might include ______.

hiring one minority for every white worker until a percentage is met

Under the 1933 Act, the registration statement must include all of the following: ______. (Check all that apply)

historical data about the issuer,use of the issuance proceeds,full details of the securities offered

The Labor-Management Relations Act prohibits the union and employer from agreeing that the employer will refrain from dealing in products of another employer. These contracts are known as ______ agreements.

hot-cargo

Excluded from the Labor Management Relations Act are ______. (Check all that apply)

household employees ,agricultural laborers,federal government employees

As part of her duty to account for funds and property, an agent must account for any ______ profits or bribes she received in the course of her responsibilities. (Check all that apply)

illicit,secret,illegal

An agent has a(n) _______ to exercise her own judgment and act contrary to the principal’s instructions without incurring liability in situations where the principal would have suffered financial loss or damages to her property.

implied authority

Liability is imposed on an agent who has exceeded his authority on the basis of a(n) ______ and the agent is treated as if he had guaranteed to the third party that he had authority to make the contract.

implied warranty of authority

Generally, the duty to compensate an agent is ______ unless a(n) ______ agency was intended.

implied, gratuitous

If a corporation is an agent, it always has ______ authority to hire ______.

implied, subagents

An affirmative action plan's goal is to ______. (Check all that apply)

increase the proportions of minorities in an employer's workforce ,increase the proportions of women in an employer's higher-level positions

The 1934 Act regulates all of the following activities: ______. (Check all that apply)

insiders transactions,tender offers,periodic disclosures

Companies can avoid liability for sexual harassment if they ______.

institute and enforce sexual harassment policies

Employers generally give their employees detailed over their day-to-day work activities and responsibilities.

instructions

The Patient Protection and Affordable Care Act extends ______ to almost all United States residents.

insurance

If the defendant intentionally acquired monopoly power or attempted to maintain it after having acquired it, the _________ has been shown.

intent to monopolize

Due to their invasive questions, polygraph tests can be ______.

invasions of privacy

The rule of caveat emptor ______.

is being weakened by the introduction of consumer protection laws,means that consumers are supposed to look out for their own interests

Generally, an agent who represents a principal when making contracts with a third party is: ______.

is not personally liable for any damages or losses

Workers' compensation laws put liability for injuries on the employer if an employee ______.

is working within the scope of her employment

If a consumer product presents an unreasonable risk of injury and is very dangerous, the Consumer Product Safety Commission may ______.

issue a rule banning the product as hazardous

If a court finds a(n) _______ in a Section 1 analysis, it must then examine the nature of the alleged violation to determine its legal status.

joint action

From the language of the Sherman Act, it is apparent that the purpose of Section 1 is to attack ________ in restraint of trade while _______ actions do not violate Section 1.

joint action, unilateral

If an agent becomes a party to a contract along with the principal, she will assume: ______.

joint liability

The effect of the agent's action on behalf of the principal is usually the same as if the principal herself had done the act.

legal

Caveat emptor means ______.

let the buyer beware

The main issue that distinguishes between an employee and an independent contractor is the: ______.

level of control

Under Section 7 the “________†analysis is similar to relevant product, and the “_______†is similar to geographic market.

line of commerce, section of the country

Sellers will not be liable under Section 2(b) of the Robinson-Patman Act if the seller in good faith agrees to \beat the competition\" by granting a(n) _________ to a customer who has been offered a lawful

lower price by one of the seller’s competitors."

The agent’s duty of ______ requires complete honesty from the agent in all dealings with the principal.

loyalty

Section 10(b) is extremely broad and prohibits any ________ that will harm the public or investors.

manipulative or deceptive device

A principal is normally not bound by the ________ acts of employees of agents unless these employees are also subagents whose appointment by the agent has been authorized.

ministerial

On behalf of the principal, an agent can delegate _______ acts to employees that involve no judgment or discretion.

ministerial

The theory outlaws trading on the basis of nonpublic information by a corporate outsider in breach of a duty - not to a trading party - but to the source of the information.

misappropriation

Under the ______ theory, Mark's undisclosed, self-serving use of Simon's information to purchase securities in breach of a duty of loyalty and confidentiality defrauds Simon who provided Mark with the information.

misappropriation

When a person with insider information acquires it by breaching a duty of confidentiality or trust, the _______ theory holds that he violates Section 10(b) and Rule 10b-5 when he uses that information for securities trading purposes,

misappropriation

Section 2 of the Sherman Act does not outlaw monopolies; rather it outlaws the act of “_______.â€

monopolizing

When a firm acquires ________â€"the power to fix prices or exclude competitorsâ€"in a particular market, the antitrust laws’ objective of promoting competitive market structures has been defeated.

monopoly power

The Consumer Leasing Act applies to a lease of consumer goods if it is for ______.

more than four (4) months and the total contractual obligation does not exceed $25,000

Because an agency agreement is based on _______, each party has the right to terminate the agency event if there is no contractual right to do so.

mutual consent

Under the 1934 Act, an issuer must register any security traded on a ______, such as common shares traded on the ______.

national stock exchange; American Stock Exchange

Accountants may be held liable for ________ in preparing tax returns and giving erroneous tax advice.

negligence

Failure of an accountant to comply with GAAP and GAAS standards may constitute ______.

negligence

Liability for failure to comply with the duty to disclose new information may be based on either ______.

negligence or fraud

If a principal has given clear instructions, an agent has a duty of ________ and is not entitled to substitute his own ______ for that of the principal.

obedience, personal judgment

Employees are under the control of their employer as to both the ______ of their work, and the ______ to achieve it.

objective, means

In a well-drafted agency agreement, the relationship terminates at the time of completion or _______.

on the happening of an event

If you operate a business that employs ______ or more person(s) outside your own family, you must comply with a myriad of federal, state, and local statutes, ordinances, and regulations that govern employment.

one (1)

The 1933 Act is primarily a(n) _______ statute, although it does cover fraudulent sales of publicly-sold securities.

one-time disclosure

At common law, recovery by a creditor against the client's accountant was possible ______.

only if the accountant was aware the audit was to satisfy the demand of a particular creditor

The Clayton Act was intended to be preventive in nature, and in most cases __________ of a significant anticompetitive effect must be shown to establish a violation.

only the probability

Unless stated explicitly in the agency agreement, an agent has a duty to exercise ______ care and the skills used in the kind of work she has agreed to do.

ordinary

The Fair Labor Standards Act addresses ______. (Check all that apply)

overtime pay ,minimum wage

When a third party files a negligence suit but is barred from recovery based on lack of privity, the court is essentially saying that the accountant ______.

owes no duty of care to non-clients

A principal is _______ when an agent signs a negotiable instrument indicating her status as an agent, but forgets to identify the principal to the third party.

partially disclosed

A principal is ________ when the third person knows he is dealing with an agent but does not know the identity of the principal.

partially disclosed

The rights and duties of the parties when the principal is _______ basically are the same as when the principal is undisclosed.

partially disclosed

If an agent represents a(n) _______, the agent is personally liable for any contract she signs on the principal's behalf.

partially disclosed principal,undisclosed principal

Afflictions that would not be covered by the ADA include ______. (Check all that apply)

people addicted to drugs ,people addicted to alcohol

While _______ rules have been criticized as shortcuts that sometimes oversimplify economic realities, they do speed up lengthy trials and provide sure guidelines for business.

per se

According to the 1933 Act, the SEC review of the registration statement involves analysis of whether it contains any _______ statements.

per se fraudulent

Actions that result in a restraint of trade are classified as ______, and are conclusively presumed to be illegal.

per se illegal

If the court finds a joint action, it will be treated as either a(n) _______ or a(n) ______ violation.

per se, rule of reason

Recent United States Supreme Court antitrust decisions indicate that the Court is moving away from ______ rules in favor of ______ treatment for many kinds of economic activity.

per se, rule of reason

Unlike the 1933 Act, the 1934 Act requires ______ by issuers with ______ equity securities.

periodic disclosure, publicly held

Under Section 906 of the Sarbanesâ€"Oxley Act, the top management of publicly traded companies are required to certify by written statements the accuracy of the company’s ______ reports required under the 1934 Act.

periodic financial

The 1934 Act requires that any issuer who has made a registered offering under the 1933 Act must file: ______.

periodic reports with the SEC

An agent who acts for a corporation that is not yet formed, or for an entity that has no legal existence, such as an unincorporated association, is: ______.

personally liable on the contract

An agent who is signs a contract for a principal who is non-existent at the time, is: ______.

personally liable on the contract

After the Civil War, the growth of large industrial trusts led to a public outcry for legislation designed to: _______.

preserve competitive market structures and prevent the accumulation of great economic power in the hands of a few firms

The first recorded organized labor action in America was a strike by ______.

printers in Philadelphia

The doctrine historically barred third party suits against accountants.

privity

In negligence suits against accountants by third parties who relied on their work, the _______ has been used by many courts to prevent the recovery of damages.

privity doctrine

The Federal Trade Commission ______.

prohibits prerecorded telephone calls unless the consumer has expressly agreed, in writing, to receive them

The Labor-Management Reporting and Disclosure Act was passed to ______.

promote honest and democracy in running the union's internal affairs

Affirmative action plans encourage employers to ______. (Check all that apply)

promote qualified minority and females candidates ,apply greater efforts in finding minorities to apply for jobs

The purpose of U.S. antitrust law is to ______ and _______ competition. (Choose the two correct answers)

protect,encourage

The 1933 Act is primarily concerned with ______ of securities.

public distribution

Under the 1933 Act, an accountant is liable to any ______ of securities issued pursuant to a defective registration statement whether or not there was ______ involved in the transaction.

purchaser; reliance

The Equal Credit Opportunity Act prohibits discrimination in credit transactions on the basis of ______. (Check all that apply)

race,age,marital status

No BFOQ exception is allowed with respect to discrimination based on ______. (Check all that apply)

race,color

Many state statutes give the state the right to ______. (Check all that apply)

raise the state minimum wage above the federal level ,set state overtime rules

A principal may become liable through _______ authority for a(n) ______ act that was done by an agent.

ratification, unauthorized

If a principal ______ the act of her agent who has exceeded her given authority, or even an act by someone who has not been appointed an agent at all - she may become liable.

ratifies

Courts weigh the the employer's need to do a search against the intrusiveness on the employee's ______ expectation of privacy.

reasonable

A principal has a duty to keep ______ from which the compensation due the agent can be determined.

records

Most of the state securities statutes regulate professional sellers of securities. These statutes ______ securities brokers and ______ dealers.

register; require proof of the financial responsibility of

The 1933 Act has two (2) principal regulatory components, and they are ______. (Check the two that apply)

registration provisions,antifraud provisions

The 1933 Act requires an issuer of the securities to file a(n) ______ with the SEC and to make a(n) ______ available to prospective purchasers.

registration statement; prospectus

The Employment Retirement Income Security Act (ERISA) ______.

regulates the management and vesting of established pension plans

In order to claim monopoly power, the plaintiff should show that the defendant has captured approximately 70 percent or more of the ________ to have monopoly power.

relevant market

An agent has a duty to inform the principal of ______ knowledge the agent gains: _______.

relevant, in the course of her responsibilities

Attempts by manufacturers to control the ________ of their products are also within the scope of Section 1.

resale price

Another name for vertical price-fixing is _________.

resale price maintenance

The principal may also be liable for the torts and crimes committed by his agent under the doctrine of ______.

respondeat superior liability

Courts typically conclude that actions that result in a(n) ________ always have a negative effect on competition and can never be excused or justified.

restraint of trade

Working papers include ______. (Check all that apply)

results of testing to determine the reliability of accounts,plans for the audit process,notes as to the handling of unusual matters

In a(n)________ trial the court endeavors to balance the anticompetitive effects of the defendants’ acts against any competitive justifications for their behavior.

rule of reason

The recently enacted ________ legislation creates legal immunity for companies that make optimistic forecasts about future earnings or new products.

safe harbor

Under the new _______ statute, as long as companies warn the public about factors that might undermine their forecasts, they will be immune from liability if the predictions prove false.

safe harbor

The EEOC will try to ______ a discrimination claim before the case goes to court.

settle

Title VII has more recently been interpreted to encompass ______ as a form of prohibited discrimination.

sexual harassment

Under the Equal Pay Act, different pay rates are permitted for ______. (Check all that apply)

shift differentials ,seniority and merit pay ,incentive-based compensation systems

If a credit card holder thinks the card issuer has made an error on her statement, the credit card holder must notify the card issuer within ______.

sixty (60) days from the time the statement was mailed

Under the 1934 Act, the 10-K annual filing must include: ______. (Check all that apply)

status of the securities,current information on conduct of business,audited financial statement

Between the agent and the principal, the agent is ultimately liable for the acts of its _______, although the agent can limit her liable through the use of a(n) _______ clause.

subagent, exculpatory

When a corporation is appointed an agent, of necessity it must act through its officers who then become _______ of the principal, because a corporation can act only through its own agents.

subagents

An accountant may be forced by a ______ to make available to the Internal Revenue Service (IRS) any ______ as well as ______ conversations with a client who is being investigated.

subpoena; working papers; testify about

A principals duty to keep the agent's records is reinforced by ______ that require such recordkeeping.

tax laws

The Occupational Safety and Health Act applies to all businesses ______.

that affect interstate commerce

If an accountant contractually agrees with her client to complete a specific work product by a March 1 and fails to do so, ________.

the accountant would be liable for any losses resulting to the client

The working papers that an accountant prepares in making an audit belong to ______..

the accountant, not the client

If a manufacturer terminates a dealer who has failed to sell its product below the suggested resale price, Section 1 of the Sherman Act is not violated because:_______.

the action was unilateral

If a third party is unaware that an agency has terminated: ______.

the agent may still be able to bind the principal

Ideally, the agency compensation agreement should specify: ________. (Check the two correct answers)

the amount of compensation due the agent ,when it is earned

If an agency agreement is poorly drafted, courts will look to _______ for guidance.

the common law of agency

If the principal and agent have no agreement on compensation, the agent is entitled to: ________. (Check the two correct answers)

the customary value of the services performed,the reasonable value of the services performed

A seller is not liable under Section 2(a) of the Robinson-Patman Act if he can show: _______. (Check the two correct answers)

the difference in prices is based on lower transportation costs,the difference in prices is based on manufacturing costs

If an accountant is an employee of an accounting firm and the firm is sued for his or her actions, the firm may have liability under ______.

the doctrine of respondent superior

An accountant who erroneously tells a client that a transaction is nontaxable may be liable for ______.

the extra costs incurred because of the bad advice

In the early 19th century, when an employee got injured on a job, employers could use the defense(s) of ______ to bar recovery by the employee. (Check all that apply)

the fellow-servant rule ,contributory negligence ,assumption of the risk

In order to show monopoly power relevant market must be analyzed which includes the following two factors: ________. (Check the two correct answers)

the geographic market,the product market

To avoid being bound to a third party after an agency has terminated ______.

the principal must give actual notice to the third party who has had business dealings with the principal

Historically, third party suits against accountants were generally barred by _______.

the privity doctrine

A seller is not liable under Section 2(a) of the Robinson-Patman Act Sellers if she can show the price discrimination reflects: ________.

the product's deterioration or obsolescence,changing conditions in the marketplace ,the marketability of the goods

The Civil Rights Act of 1991 expanded employment discrimination law to include ______. (Check all that apply)

the right to a jury trial in intentional discrimination cases,the availability of punitive damages in intentional discrimination cases

The Telemarketing and Consumer Fraud and Abuse Prevention Act requires a consumer to be informed about ______.

the total cost of the goods or services,the terms of any refund or exchange policies,any material restrictions or conditions on the use or purchase of the goods or services

Drug tests are generally allowed if an employer can show that ______.

the use of drugs threatens public safety

An agent will breach her duty ________ if she does not promptly notify the principal of anything that is relevant to the agency that she knows or should know are of concern to the principal. (Check all the correct answers)

to relay information to the principal,to inform the principal,to communicate information to the principal

An accountant's breach of the duty to exercise ordinary skill and care may lead to malpractice action based on the ______.

tort of negligence

When an agent commits a _____ or crime while working for the principal, the agent is ______ for the consequences of his actions.

tort, personally liable

Principals are generally less likely to be liable for a contractor's and crimes.

torts

Intentional discrimination is referred to as disparate ______, while acts that have a discriminatory effect are referred to as disparate ______.

treatment; impact

Actual authority is the ______ authority granted to the agent by the principal. (Check all that apply)

true ,implied,proper

Approximately ______ of the states in the United States have genetic protection laws.

two-thirds

In which of the special situations below may an agent become personally liable for a contract with the third person? (Check all that apply)

unauthorized actions by the agent,nonexistent or incompetent principals,an undisclosed principal

When a principal instructs her agent to commit a crime, the agent is: ______.

under no legal obligation to do so

Equal pay should be paid based on equal skills, effort, and responsibility performed ______.

under similar work conditions

Vertical, nonprice restraints are analyzed: _______.

under the rule of reason

If a large and well-known company wishes to purchase land to develop for a new manufacturing plant, it could approach the transaction as a(n) ______ to keep costs down.

undisclosed principal

The identity of a(n) _____ would be known only to the agent.

undisclosed principal

As a matter of business policy, a manufacturer can lawfully ______ assign exclusive dealerships to various entities in an geographic area.

unilaterally

Monopolists have the power to fix prices _______ because they have no effective competition and Section 2 of the Sherman Act was designed to attack monopolies.

unilaterally

Absent _______ price restraints, retail services that enhance interbrand competition might be underprovided.

vertical

Pensions plans are said to ___________ when the employee's legal right to the pension fund cannot be taken away.

vest

Some states and federal laws are regulating an employer's use of ______ and other electronic monitoring because of privacy concerns. (Check all that apply)

video ,computers,phones

Under the Securities Exchange Act of 1934, a purchaser-plaintiff need not prove that the defendant: _______.

was negligent or acted with scienter

The primary purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Act is to provide incentives for _________.

whistleblowers

Title VII of the Civil Rights Act applies to employers ______. (Check all that apply)

who engage in an industry that affects interstate commerce ,with fifteen (15) or more employees

Essentially, a principal ____________ if the agent had performed the act herself.

will be liable for the acts of an agent’s employees only

Third parties who suffered damages as a result of an accountant's negligence have a much greater likelihood of prevailing if they can prove the accountant acted ______.

with scienter

If a credit card holder complains in writing of a mistake on his or her bill, the issuer must respond with a correction or an explanation of the charge ______.

within ninety (90) days or two (2) billing cycles

Historically, the ______ privilege provides a broad privilege against compelled disclosure of an attorney’s papers prepared for trial.

work product

Recently, the ______ privilege has been extended to a broader class of professionals and now protects any documents and tangible things prepared ________.

work product; in anticipation of litigation

Suppose CFC, LLP, an accounting firm in Austin, Texas, agrees to complete an audit for Big Box by December 1st, because that is the deadline set by a prospective investor with funds to invest in Big Box. At every step of the way Big Box cooperates with CFC. However, due to CFC's volume of business, the audit is not completed until February 1st at which time the investor informs Big Box it has invested the funds elsewhere. In this case, CFC ______.

would be liable for any losses resulting to Big Box

If the IRS gave Big Box a deadline of June 1 to submit an audit of its financial statements, but Big Box was unavailable to provide sufficient access to its accounting firm who was performing an audit, the accounting firm ______.

would most likely not be liable for losses if they resulted from Big Box not being available

Pursuant to the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report every ______.

year