Business Law 2 *
A perpetrator of a crime must have a mental state with the intent to commit an act or omission, which is known as mens rea
True
A seller in an international transaction would be well advised to insist that the buyer provide an irrevocable letter of credit because it is issued by the buyer's bank and guarantees payment on a pre-determined credit amount
True
A victim of a tort may sue and recover money damages
True
Administrative agencies are required to seek public comment for proposed regulations, after which the agency may decide whether or not to promulgate the proposed regulation
True
Administrative agencies generally are not subject to formal rules of evidence
True
Administrative agencies often conduct research, undertaken by its own staff or with the assistance of third parties, before proposing a new regulations
True
Administrative law judges do not have to be lawyers by training, unlike judges in federal and state courts
True
An American company making export sales, where title to goods passes to the buyer in the United States, is not subject to local taxation for such sales in the destination country
True
An American company selling products to consumers abroad can take steps to ensure payment by requiring the buyer to provide an irrevocable letter of credit
True
An export license is usually necessary for exports of defense, high-tech, controlled or products that are in short supply
True
As a condition to approving a proposed large business combination or merger, the Department of Justice may require the divestiture or spin-off of certain parts of the merged company, such as when the combines market share of a particular product in a given geography exceeds 40%
True
Bid rigging among competitors is an example of a horizontal restraint on trade
True
Bilateral treaties are those that are signed by only two nations
True
Companies may achieve a dominant share market legitimately and in compliance with antitrust laws, usually by having superior products, innovation, talent, and strategies
True
Corporations do not have the ability to invoke the Fifth Amendment right against self-incrimination
True
Either private individuals or administrative agencies may file a complaint alleging a violation of an agency regulation
True
Federal Executive Agencies historically have been created to address significant and developing national needs of the United States or as a response to important events, tragedies or emergencies
True
Filing a fraudulent insurance claim as an example of the crime of false claims and pretenses
True
For criminal liability to be imposed, the perpetrator does not need to have inflicted harm on another. A mere attempt to impose harm may be sufficient to create criminal liability
True
Forgery includes signing another person's name to a check with the intent to defraud, and also includes altering of documents for the same purpose
True
Generally, there are three types of torts: intentional, negligence and strict liability torts
True
Horizontal restraints on trade, such as price fixing among competitors, are per se illegal
True
Joint and several liability arises when two or more defendants are liable for damages to a third party, but each defendant is responsible for the entire amount of the liability
True
License freight forwarders are often retained because of their expertise in export licensing requirements
True
Multilateral treaties are those that are signed by more than two nations
True
Parties will provide advanced notice of a large proposed business combination, such as a merger or acquisition; to the Department of Justice (DOJ) under the Heart-Scott-Rodino Act must await DOJ approval before completing the acquisition
True
Resale price maintenance is an example of a vertical restraint on trade
True
The Annual Corruption Perception Index published by Transparency International demonstrates that highest levels of public corruption often occur in developing nations
True
The Antitrust Division of the Department of Justice may block a merger of two large companies if such transactions would substantially lessen competition or tend to create a monopoly
True
The FCPA provides an exemption for nominal facilitating payments to foreign government officials to implement "routine government actions"
True
The Federal Register is a daily publication (except holidays) that provides the text of all proposed administrative regulations
True
The Foreign Corrupt Practices Act (FCPA) makes it a crime in the United States to bribe foreign officials in another country for the purpose of obtaining or retaining business
True
The Fourth Amendment right protecting individuals against unreasonable searches and seizures by law enforcement also applies to corporations
True
The World Trade Organization (WTO) is the dispute resolution body for GATT violations
True
The media generally enjoys protection against claims of libel brought by public figures, unless the media knowingly published incorrect facts or demonstrated a reckless disregard for the truth
True
The media generally enjoys protection against claims of libel, so long as they publish a retraction or correction as soon as it becomes evident that earlier reported facts were incorrect
True
The meetings of administrative agencies convened to discuss proposed regulations are generally open to the public
True
The party who commits a tort is called a "tortfeasor"
True
The practice of buying or selling shares in a public company based on confidential information not yet disclosed to the general public is known as "insider trading"
True
The primary purpose of federal and state administrative agencies is to administer and implement legislation through the issuance of regulations
True
The primary purpose of the Federal Trade Commision is to curb unfair or deceptive trade practices
True
The primary purpose of the Food and Drug Administration is to establish health and safety standards for cosmetics, food and drugs
True
The statute of limitations for most torts is usually three years
True
The unauthorized use of an ATM card is an example of the crime of false claims and pretenses
True
Tort damages may include pain and suffering and the cost of medical expenses, as well as the loss of future earning capacity
True
Tort of intentional infliction of emotional distress generally requires proof of outrageous conduct and resulting mental anguish in the victim
True
Trademark owners can block importation of black market and gray market good
True
Vertical restraints on trade, such as a resale price maintenance, are subject to the will of the reason analysis to determine whether they are anti-competitive and therefore illegal
True
When companies propose to enter into a large business combination, such as a merger or acquisition, they must first provide advance written notice to the Department of Justice under the Hart-Scott-Rodimo Act
True
White-collar crimes generally do not involve acts of violence
True
Predatory pricing is not illegal under the antitrust laws because it is considered pro-competitive behavior
False
Generally, which power(s) does/do an administrative agency possess? A. Legislative, executive and judicial powers B. legislative only C. judicial only D. executive only
A
Ordinarily, a court will ______ an agency's decision to do nothing about a particular complaint A. respect B. reverse C. over-rule D. none of the above
A
The "public comment" period for proposed administrative agency rules must be at least ______ days A. 30 B. 60 C. 90 D. 120
A
Which of the following shows the deepest commitment to doing business in a foreign jurisdiction? A. wholly-owned subsidiaries B. licensing C. foreign distributorships D. agency arrangements
A
An administrative regulation: A. is a guideline that may be voluntarily followed B. carries the force of law C. is a suggestion of what will protect the environment D. is a standard used to guide an industry at the industry's discretion
B
Antitrust laws do not prohibit: A. a manufacturer from price-fixing with its competitors B. a seller to have a large market share because of the superior product or business C. a manufacturer to have impermissible tying arrangements D. mergers and acquisitions that tend to harm competition
B
Which countries are signatories to the North American Free Trade Agreement (NAFTA)? A. Mexico and the United States B. United States, Mexico and Canada C. Canada and Mexico D. Canada and the United States
B
In reviewing and overturning agency action, courts generally apply the: A. "beyond a reasonable doubt" standard B. "perponderance of the evidence" standard C. "arbitrary and capricious" standard D. "rational relationship" standard
C
_______ is a concept that requires parent companies to enter into transactions with their wholly-owned subsidiaries at arms-length and at fair value terms A. Divestiture B. Franchising C. Transfer Pricing D. Sales Agency
C
Asset protection insurance protecting against foreign government expropriation may be: A. obtained from the UN Convention on Contracts for the International Sale of Goods (CISG) B. obtained from the UN Conference on Trade and Development (UNCTAD) C. obtained from the International Monetary Fund (IMF) D. obtained from the Overseas Private Investment Corporation (OPIC)
D
Charging different prices to customers are permitted under the Robinson-Patman Act when there are: A. differences in the quality or a grade of goods sold B. close-out sales to make room for a new line of products C. differences in the cost to serve a particular customer D. all of the above
D
Export licenses are typically required for: A. products or chemicals that may be used in the defense industry B. high-tech devices C. controlled substances or items in short supply D. all of the above
D
The General Agreement on Tariffs and Trade (GATT) is a multilateral treaty that promotes free trade through: A. the publication of import tariffs for many classes of goods B. discouraging non-tariff barriers to trade C. the requirement of most favored nation treatment among member nations D. all of the above
D
Which of the following are non-tariff barriers to trade? A. import quotas B. government subsidies of local industries C. destruction testing and inspection at customs D. all of the above
D
__________ power relates to a firm's ability to control price and exclude competitors A. Production B. Marketing C. Product D. Monopoly
D
Merely thinking about committing a criminal act is sufficient to establish actus rea
False
Non-tariff barriers are the most common barriers to free trade
False
A person cannot be held criminally liable for acts perpetrated by another
False
Administrative agencies are often known as departments or commissions, but never as authorities, boards or bureaus
False
Aerial searches conducted by administrative agencies seeking evidence in plain view generally require a search warrant
False
All companies that achieve a dominant market share are monopolies by definition and deemed to be anti-competitive and illegal under US antitrust laws
False
An American company can avoid jurisdiction and taxation in a foreign country by establishing a wholly owned subsidiary in that country
False
An administrative agency cannot hold a hearing without a jury
False
Antitrust laws are primarily intended to protect competitors not competition
False
Any claim of defamation, whether by slander or libel, does not necessarily require publication of an untrue statement to a third-party
False
Courts actively seek to overturn an agency's interpretation of a regulation, especially if it involves a technical matter
False
Expert witnesses are rarely used to help quantify tort damages for juries
False
Federal antitrust laws were enacted in recent years in response to the centralization of power in a few large commercial banks after the recent Great Recession
False
For business crimes, corporate officers cannot be held responsible for the criminal acts or omissions of their employees
False
For criminal liability to be imposed, the perpetrator must be aware that he/she is violating the law
False
GATT prevents the US Trade Representative from retaliating against the "dumping" of goods sold in the US at less than fair market value by imposing countervailing duties on imports from the offending country
False
Horizontal restraints on trade, such as price fixing among competitors or bid-rigging, are subject to rule of reason analysis to determine whether they are anti-competitive and therefore illegal
False
Regulations properly adopted by federal agencies and published in the Code of Federal Regulations (CFR) are important to help "fill in the blanks" left by Congress and to help clarify federal statutes but they do not carry the full force of law
False
Slander is the printed equivalent of the spoken form of defamation known as libel
False
Tariff barriers are the least common barriers to free trade
False
The Annual Corruption Perception Index published by Transparency International demonstrates that the United States has the lowest level of public corruption of any country in the world
False
The Annual Corruption Perception Index published by Transparency International demonstrates that the level of public corruption is minimal in most nations
False
The Freedom of Information Act provides access to documents or information utilized by administrative agencies upon request by the public with no exceptions, even where such access would violate privacy or disclose sensitive confidential information
False
The General Agreement on Tariffs and Trade (GATT) is a multilateral treaty signed by many developed nations that generally promotes free trade, but prohibits countries from protecting their domestic industries through the imposition of tariffs on imported goods
False
The International Court of Justice is the dispute resolution body for GATT violations
False
The North American Free Trade Agreement (NAFTA) is a bilateral treaty between the United States and Mexico
False
The modern administrative agency typically possesses legislative and executive powers, but not judicial powers
False
The practice by a manufacturer of selling products to customers in a market below the average viable cost of production with the intent of driving out competitors is known as price discrimination
False
The practice of selling products of similar grade and quality but at different prices to the next level of distribution (eg. retail customers, dealers, etc) is known as predatory pricing
False
The truth is never effective defence to claims of defamation, whether such defamation occurs as a result of libel or slander
False
The types of activities conducted by cartels, such as the Organization of Petroleum Exporting Countries (OPEC), are generally permitted under the US antitrust laws
False
Vertical restraints on trade, such as resale price maintenance and price discrimination, are per se illegal
False
The statute of limitations for capital crimes is usually six years
Flase
"Tort" comes from the Latin term "tortus," which means "crooked, dubious, or twisted"
True