law exam 3
LaTavian was a midlevel manager for Superco. He saw financial irregularities within Superco and reported them to the federal authorities. The SEC followed up on LaTavian's tip and discovered fraud at Superco which led to an SEC enforcement action and recovery from Superco. Under the Dodd-Frank law, what percentage of the recovery is LaTavian entitled to as a reward for being a whistle-blower?
10 to 30 percent
A design patent will last for
14 years from the date of the filing of the application with the U.S. Patent and Trademark Office.
A utility or business method patent will last for
20 years from the date of the filing of the application with the U.S. Patent and Trademark Office.
A study published in the Harvard Business Review in January 2000 found that intellectual property represents approximately ________ of an average firm's value.
70 percent
Mary Beth has written a novel. Copyright protection regarding her work will be for
70 years after her death.
Which of the following would not be a possible obstuction of justice charge?
A defendant takes the 5th Amendment when questioned by investigators.
Carlton was a director of Rich Financial, Incorporated. Which of the following are duties that Carlton owes to Rich Financial?
A duty of care and a duty of loyalty.
In order to pursue a copyright infringement claim against an Internet service provider (ISP), the copyright owner must first provide the ISP with all the following except:
A statement by the complaining party that economic loss as a result of the use of the material has occurred.
Which of the following would likely be considered a covered disability under the Americans with Disabilities Act?
AIDS
Which of the following is true of EEOC claims?
After 180 days have elapsed from the time of a complaint, a plaintiff may demand that the EEOC issue a right-to-sue letter.
Which of the following is true of the Social Security Act?
All of the answer choices are correct.
Walter filed for bankruptcy. Which of the following is true immediately after he files?
An automatic stay is granted and debtors may not collect any debts from Walter.
Failsafe Securities Incorporated has filed bankruptcy. Among the investors in Failsafe, who will be paid first?
Bondholders
Enrique owns Enrique's Investigation Agency (EIA). He has been getting behind on bills because some clients have failed to pay on time. If he wants to receive temporary protection for EIA from creditors so that he can continue operating his business while devising a plan to pay them, which type of bankruptcy protection should Enrique pursue?
Chapter 11
Which of the following employees would be covered under the Fair Labor Standards Act?
Conner, a warehouse worker
Elise, a sales executive, was fired by her employer, Mobile Manufacturing. Elise had not made her sales quota for two straight quarters, which was contractual grounds for termination. She wanted to continue her health care coverage after being fired, paying all insurance premiums and administrative fees. Which of the following laws requires that Mobile Manufacturing permit her to do this?
Consolidated Omnibus Budget Reconciliation Act
Tashawna wants to open a modeling agency, be the principal thereof, and have no personal liability for debts. Which of the following organizations would best suit her needs?
Corporation
William is a director of National Cars, Incorporated. He understands that he should act in good faith and behave as a reasonably prudent person would under the circumstances in his dealings related to his position with National Cars. Which duty does this encompass?
Duty of due care
The U.S. Department of Labor is authorized to oversee pension and retirement savings plans that corporations set up under the
Employee Retirement Income Security Act.
The administrative agency charged with carrying out federal workplace antidiscrimination laws is the
Equal Employment Opportunity Commission.
High Flite Airways had a system in place to deter, prevent, report and correct sexual harassment. Any employee caught sexually harassing another would be subject to immediate termination. High Flite also has an anonymous tip line system set up for the reporting of harassment. Wendy was harassed repeatedly by Elroy, but always outside of the presence of other employees. Wendy filed a lawsuit against High Flite based on the harassment. If High Flite can prove that Wendy never used the anonymous tip line system or any other means provided by them to report the harassment, they can likely assert the __________ defense.
Faragher/Ellerth
Under federal law, what must an employee who is alleging employment discrimination do first?
File a complaint against the employer with the local EEOC office within 180 days of the adverse job action.
Which of the following is not an example of a trademark lost, or in danger of losing protection, due to its becoming a generic term?
Ford
The amendment requiring that an arrest warrant may not be issued without probable cause is the
Fourth Amendment.
The amendment that requires probable cause to conduct searches and seizures is the
Fourth Amendment.
Which of the following does not require a duty of care or good faith to other principals?
Gary owns a shoe repair business as a sole proprietorship and serves dozens of regular customers.
Porter and Dolly are in a business to sell Porter's locally famous chili. Dolly agrees to handle the sales and marketing and Porter agrees to oversee making the chili. They do not enter into a formal agreement, written or otherwise. Which of the following business types is this?
General partnership type known as an implied partnership.
In Metro-Goldwyn-Mayer Studios v. Grokster, Ltd., Grokster claimed a fair use exception to the copyright infringement claim because its process was such that it was impossible for Grokster to know if the users of its device were infringing or not. Which of the following was the outcome?
Grokster was denied the fair use exception because the majority of its business model was dedicated to appealing to former Napster customers and the model showed intent to infringe on copyrights.
Casey is considering loaning money to Dorrine by a written and dated agreement. She wants to increase the likelihood that she will be high in priority for receiving money as repayment should Dorrine ever declare bankruptcy. Which of the following should Casey do?
Have Dorrine put up some property as collateral under the agreement and take possession of it.
Which of the following is not generally a rationale for piercing the corporate veil?
Inadequate capitalization, failure to follow corporate formalities and fraud or wrongdoing by corporate directors are all considered rationales for piercing the corporate veil.
The Federal Unemployment Tax Act accomplished which of the following?
It established a state-administered fund to provide payments to workers with sudden job loss.
Which of the following unsecured creditors has first priority?
Janice, an attorney who handled the bankruptcy and has unpaid legal fees.
Which of the following are exempt assets in a Chapter 7 bankruptcy?
Jessie declares personal bankruptcy and owns a diamond ring appraised at $1,500.
Julio is a general partner and Farrah is a limited partner in a limited partnership. Julio and Farrah are the only partners and each invested $50,000 in the partnership. This $100,000 represents the total assets in the partnership. There is a substantial lawsuit against the partnership and the plaintiff is awarded a judgment for $200,000. The plaintiff collects the $100,000 of partnership assets and is attempting to collect the remaining $100,000. Which of the following is a correct statement of the additional liabilities that are still owed by Julio and Farrah?
Julio will have a liability of $100,000 and Farrah will have a liability of $0.
Kamalla is the CFO of Fraudco. Her boss, Driscoll, recently told her to shred all evidence of the financial statement fraud that Fraudco has been engaged in to hide the evidence from the SEC. The SEC had been conducting an investigation of Fraudco but had released no findings yet.
Kamalla could be imprisoned for up to 20 years if she shreds the documents.
The National Labor Relations Act requires which of the following?
Labor and management to negotiate in good faith.
Which of the following activities would management be permitted to do under federal law?
Launch a marketing campaign against unionizing efforts.
Under Article 9 of the UCC, which of the following could be used as collateral?
Light fixtures attached to a commercial building
The Securities Act of 1934 would focus on
Luke, a purchaser of common stock on a public exchange from another investor.
Unions were originally permitted to use economic weapons in the collective bargaining process under the
National Labor Relations Act.
Protection of employees through the prevention of workplace injuries is addressed by the
Occupational Safety and Health Act
Which of the following is least likely to be considered a mitigating circumstance?
Sex.
Three doctors, Brent, Tori and Shawnee, formed a limited liability partnership for their medical practice, with all being equal partners. Shawnee was negligent in her treatment of a patient and was sued for malpractice. Whom of the following will have personal liability for the judgment if the patient wins their lawsuit?
Shawnee will have personal liability for the judgment.
Bunny is not allowed to file for Chapter 7 bankruptcy in her state. Which of the following would be a reason for this under bankruptcy law?
She makes too much money to pass the means test.
The amendment that guarantees a speedy public trial is the
Sixth Amendment.
Which of the following are ways in which state antidiscrimination statutes tend to differ substantially from federal laws?
State statutes tend to cover more employers and more protected classes.
In U.S. v. DeCoster, the defendants' company suffered from an extremely serious salmonella contamination that affected up to 56,000 victums. Peter and Jack DeCoster, defended, saying they had adopted all of the recommendations and precautions but it failed to eradicate salmonella, therefore they were not culpable. Which of the following was the result?
The DeCosters were found guilty because they knew or should have known of the risk presented to the public.
Which of the following powers does the EEOC have?
The EEOC has the power to sue on behalf of aggrieved employees, to investigate discrimination claims and to make rules.
Which of the following is an application of the emergency escrow provisions created by the Sarbanes-Oxley Act?
The SEC required that a multi-million dollar payout to a fired corporate executive be held in escrow prior to formal allegations of wrongdoing.
The United Amusement Worker's Union (UAWU) attempted to organize the workers at a bargaining unit, Seven Flags Over Kentucky, in the first steps of creating a union. Which of the following must occur under federal law for this to happen?
The UAWU must get at least 30% of the members of the bargaining unit to sign authorization cards.
Mike raped Kathy in the parking lot of Tom's Pub. The attorney general/district attorney's office prosecuted Mike on rape charges. Subsequently, Kathy filed a lawsuit against Mike for money damages. Classify each legal action.
The attorney general/district attorney's case was a criminal case; Jane's lawsuit was a civil case.
Which of the following was a provision of the Labor Management Relations Act of 1947?
The authorization to the president of the United States to suspend a strike in times of national emergency.
LeBaron was a corporate executive for ABC Solutions, Incorporated (ABC). He made a decision while managing ABC that turned out very badly and resulted in significant losses for ABC shareholders, even though it appeared reasonable at the time he made it. Which of the following would protect LeBaron from lawsuits against him filed by shareholders?
The business judgment rule
Corrigan was the sole proprietor of Tastee Burgers, a restaurant. In 2018, Bergdahl allegedly suffered from food poisoning after eating lunch at Tastee Burgers. In 2019, Corrigan died and left everything, including Tastee Burgers, by will to his niece, Layla. Layla then reorganized Tastee Burgers as a limited liability corporation with her best friend Horowitz. In 2020, Bergdahl filed a lawsuit for $500,000 against Tastee Burgers for long term health effects from the food poisoning. Layla and Horowitz have denied responsibility for the injuries and seek a dismissal of the lawsuit. What should the court decide?
The court should grant a dismissal, as sole proprietorships terminate upon the death of the sole proprietor.
ABC Corporation substantially copied a patent of XYZ Corporation. ABC did not precisely copy XYZ's patent as there was one element of ABC's device that performed substantially the same function but was not exactly the same as XYZ's patent. If XYZ sued for infringement, what doctrine would support XYZ's theory?
The doctrine of equivalence
Teddy holds a bond issued by XYZ Corporation that has matured. What has happened to his bond?
The face value of the bond is due to be paid to him.
Which of the following sociological movements forced the federal government to legislate protections for employee working conditions?
The labor movement
Mike has written a novel. When, if ever, would Mike's novel be copyright protected?
The novel is copyrighted automatically after completion.
Which of the following statements is correct?
The obligations of a corporation are distinct from the obligations of its principals.
Dirk and Benedict agreed to form a limited liability company (LLC). However, they did not execute an operating agreement. What will be the result?
The state LLC statute will set out the default rules.
Which of the following does not have to be shown for copyright protection to be granted?
The work has a present or potential value.
The Age Discrimination in Employment Act (ADEA) would most likely apply to which of the following situations?
Theo, a 65-year-old man, was replaced by Prescott, a 50-year-old man.
Which of the following statements is true?
There are no federal common law crimes.
Which of the following is an attribute of privately held corporations?
They are not limited in terms of revenue.
Which of the following is true of general partnerships?
They involve two or more principals.
Kameron, Candice and Leo were members of an LLC, Printing Unlimited, LLC (PU). They leased a digital printing press for their company. Press Sales, Incorporated (PSI), the company that manufactured and leased the printing press to them, required personal guarantees from each of them as a requisite leasing the press. What will be required of Kameron, Candice and Leo?
They must pledge personal assets to guarantee the payment obligations of PU.
Which of the following is true of Subchapter S corporations?
They receive flow-through tax treatment.
Tamelin was a shareholder of Low Country Incorporated, a corporation. Which of the following is a right that Tamelin has?
To elect and remove directors if she has consent of the majority of shareholders.
Which of the following is not a theory of discrimination under the Civil Rights Act?
Unclear opportunity
The model statute used by most state legislatures to govern limited liability companies is the
Uniform Limited Liability Company Act.
Bambi wants to have an initial public offering (IPO). Under what circumstances would an IPO make sense for Bambi's organization?
When she wants to turn her privately held corporation into a publicly held corporation.
Misty and Kate opened a coffee shop in their home state, Massachusetts. They incorporated their shop, Misty Kate's Coffee Adventure, Inc., in the state of Massachusetts. In Massachusetts, Misty Kate's would best be characterized as
a domestic corporation.
In a member-managed limited liability corporation (LLC), the management is similar to
a general partnership.
An ex post facto law is
a law that criminalizes an act that occurred before the law was enacted.
A dissolution of a limited liability corporation (LLC) is
a liquidation process that may be triggered by an event specified in the operating agreement.
John owns Tech Gamers Enterprises (TGE), a sole proprietorship. A typical way for him to raise capital would be by
a private or commercial loan.
The three stripes on Adidas clothing represent
a trademark.
Pete has met with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros. The professional investors focus exclusively on funding technology companies in the legal field and are demanding substantial control over Techlaw Pros through sitting on the board of directors. Pete is seeking money from
a venture capital firm.
Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequences of the action and knowingly committed the crime. The killing would be the
actus reus.
An involuntary bankruptcy petition is filed
against a debtor by a group of three or more creditors with an unsecured aggregate claim of at least $15,775.
Piercing the corporate veil is the process of
allowing parties to reach the personal assets of shareholders of a corporation.
A Difference between a C corporation and an S corporation is
an S corporation's earnings are taxed only when income is distributed to shareholders, a C corporation taxes at the corporate level and when income is distributed to shareholders.
Abli is a grocery store chain incorporated in Germany. If Abli opens up several stores and conducts business in several states in the United States, Abli, Incorporated would be characterized as
an alien corporation.
Which of the following is eligible for immediate trademark protection?
arbitrary trademarks
Pass-through entities are those that
are not subject to tax, income is taxed only when distributed to partners.
Janet was tried and convicted of reckless driving. The sentence will be imposed
based on the discretion of the judge, subject to sentencing guidelines.
Dixon is on trial for embezzlement, a crime. For her to be proven guilty, her guilt must be proved
beyond a reasonable doubt.
Jan is on trial for arson. For Jan to be found guilty, her guilt must be proved
beyond a reasonable doubt.
From state to state, LLC statutes
can vary considerably.
Destinee, Teronne, and Ahmed had a limited liability partnership (LLP) that called for additional contributions from them to fund the LLP when necessary. This provision is known as a/an
capital call.
Gerald was the national sales manager of the Intergalactic Space Corporation (ISC), a publicly traded company. ISC was involved in financial report fraud, but Gerald was not involved in it and had no knowledge of it. Under Sarbanes Oxley (SOX), Gerald was forced to forfeit several years of executive bonuses that were tied to the financial reports that he had received from ISC. Under SOX, this is known as a/an
clawback provision
The rights of workers to engage in the process of negotiating an agreement on behalf of an entire workforce is known as
collective bargaining.
The No Electronic Theft Act primarily addressed protection regarding
copyrights.
Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. What type of business entity do they wish to form?
corporation
Luke declared a Chapter 11 bankruptcy for his business, Lukeco. There were ten creditors to whom he owed money and seven of them accepted the reorganization plan and three rejected it. Luke wants the court to force all creditors to accept the plan. This is known as the
cram-down provision.
For a copyright to be created, it requires that the work must be
creative, original and fixed in a durable medium.
A copyright protects the rights of
creators of original works for a defined period of time.
The legal process and safeguards given to individuals in the U.S. during criminal investigations, arrests, trials, and sentencing is known as
criminal procedure.
Huge Corporation sought to raise money by issuing bonds. This is an example of ______________ financing.
debt
The primary methods of capitalizing LLCs are
debt through private lenders or commercial lenders or through a sale of ownership equity.
Janis declared Chapter 11 bankruptcy for her business, the Holding Company, Incorporated (HCI). The bankruptcy court appointed Grace as a trustee to oversee the management of HCI and report back to the judge. This process is known as a
debtor in possession.
Ian was a shareholder of National Corporation (NC), a publicly traded corporation. He brought a lawsuit against Tenielle, the president of NC, in the name of NC itself. Ian is alleging that Tenielle breached her duty of loyalty to NC. This is known as a/an
derivative action.
All of the following are steps in forming a union under federal law except
division of responsibilities.
A unanimous consent resolution is a/an.
document signed by each principal to dispose of necessary tasks such as electing directors or issuing stock
With regard to liability, the Revised Uniform Limited Liability Company Act
does not allow managers and other members of an LLC to avoid personal liability if they have acted in bad faith.
Although it may vary due to the nature of the case, generally a delay of more than ________ is presumptively an unconstitutional violation of a defendant's right to a speedy trial.
eight months
The primary purpose of a family limited partnership is to
enable wealthy members of one generation to distribute assets to heirs using a method that allows the distributing generation to claim a much lower market value than the actual market value of the gift.
During and immediately after a discrimination investigation, the EEOC is required by statute to
engage in conciliation negotiations.
The bylaws of a corporation
establish its internal rules.
The SEC's powers include all of the following except the power to
establish new federal agencies for the prosecution of securities law violations.
A patent is a statutorily created monopoly right that allows the inventor the
exclusive right to make, use, license and sell the invention for a limited period of time.
The employment-at-will doctrine
exists in some form in every U.S. jurisdiction.
The managers of a limited liability corporation owe __________ duties to the other members of an LLC.
fiduciary
Jones and Hagen want to form a limited partnership. To do so, it is required that they
file a certificate of limited partnership with their state government.
Theo and Vincent had a general partnership and wanted to form a limited liability partnership (LLP) for protection from personal liability. To form this, they must
file a statement of qualification with the appropriate public official.
Because it is not a taxable entity, an LLP
files an information tax return.
A limited liability corporation (LLC) is formed by
filing articles of organization with a state public official.
Trade secrets are protectable
for as long as the company desires.
A trademark can be any of the following except a
formula.
Stevie owns a business and wishes to distribute products to a broad market without having to hire additional employees or deal with the overhead costs of retail space. Stevie should set up a
franchise.
In a franchise arrangement, the _____________ is the business entity which sells the ______________ the right to use its trade secrets, trademarks and products to operate a business.
franchisor, franchisee
Evidence obtained from an illegal search may not be used against the defendant. This is called
fruit of the poisonous tree.
Fiduciary duties are the duties that
general partners owe to ensure they are acting in the best interest of the partnership.
The choice of establishing a member-managed or manager-managed limited liability corporation (LLC) is
generally made on a public filing and available for third parties to view.
Ahmed wanted to get a loan, but since he was starting up a new business and considered a credit risk due to inexperience, the bank required that he get a cosigner on the loan. He convinced his friend Aaida, who had excellent credit, to cosign on the loan. Under the terms of the agreement, Aaida will only owe on the loan if Ahmed stops paying and defaults. Aaida is known as a
guarantor.
Adrienne, Rocky, Paulie and several other investors have a common expectation of profit in Mickey, Incorporated. Assuming all other requirements to classify this as a security are in evidence, the commonality of this transaction would be described as a
horizontal commonality.
Mitigating circumstances
if proved, may be applied to reduce a defendant's punishment.
The Lanham Act allows the U.S. Patent and Trademark Office to reject a copyright if it is
immoral, deceptive, or scandalous matter.
Haley and Gina were partners in a limited liability corporation (LLC). The LLC became insolvent, it was unable to pay off its debts. There was $100,000 left in the LLC in cash assets and Haley and Gina immediately transferred $50,000 each to their husbands. This is known as a/an
improper distribution.
A grand jury will issue a[n] ________ if its investigation indicates that a defendant should be held over for trial.
indictment
Losses incurred by a limited liability partnership (LLP) are reported on the partners'
individual returns and are deductible.
From least to most serious, crimes are classified as follows
infractions/misdemeanors/felonies.
Juan is a corporate director for Thorough Manufacturing, Incorporated (TMI) and owns 12 percent of the stock of TMI. Juan is classified by federal law as a/an
insider.
Debtco no longer has enough assets to pay the usual business bills that arise. Debtco is considered
insolvent.
Secure Financial Advisors (SFA) was a firm that bought and sold securities on behalf of their clients. SFA is known as a/an
intermediary.
The primary distinctive for Chapter 11 bankruptcy is it
is a reorganization.
The bespeaks caution doctrine focuses on the duty that a/an
issuer of stock has to include disclosures in the stock prospectus about cautions that an investor should take; it provides a defense to the issuer if the disclosures are specific and narrowly tailored.
An advantage of a sole proprietorship is
it is not subject to corporate income taxation.
Securities that are exempt from full registration requirements include all of the following except
large public offerings to unsophisticated investors.
Weston and Noble wanted to form a music production business. They wanted to share profits and losses and have heightened protection from debts and liabilities. Which of the following business entities would be most appropriate for them?
limited liability partnership
Dissolution of a limited liability corporation (LLC) is a
liquidation process triggered by an event specified in the operating agreement.
The Computer Software Copyright Act defined computer software programs as
literary works.
Sean, Gertie and Manfred formed a limited liability corporation (LLC). All three had the power to bind the LLC. This form is known as a/an
member-managed LLC.
Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequence of the action and knowingly committed the crime. The malice aforethought would be the __________________.
mens rea
LaStarla was competing in a beauty pageant and was offended when Tracee, a fellow competitor, told her that she looked like a blimp in her evening gown. LaStarla flew into a rage and smashed her crown on top of Tracee's head, unfortunately killing her. The state of mind LaStarla had at the time of the killing is known as the
mens rea.
Carla worked for Schmuckco and was fired. In retaliation, she downloaded several hundred pages of secret Schmuckco marketing plans for the upcoming year and sold them to HiTech, Inc., a competitor of Schmuckco. Carla has engaged in
misappropriation.
The use of limited liability partnerships has become
more widespread as some family businesses now use this form.
Irving is a creditor who has taken interest in real estate to collateralize a loan. Irving is known as a
mortgagee.
Acme Corporation attempted to register a trademark that was generic and not fanciful, arbitrary, suggestive or descriptive with a secondary meaning. Under these circumstances, Acme has
no case for registration of the trademark because a trademark must be fanciful, arbitrary or suggestive to be capable of being copyrighted.
Wally purchased a Gucci purse from Luxury Products-R-Us for his wife that cost $2,000 on April 1. He purchased this under a contract where he promised to pay off the $2,000 to Luxury Products-R-Us within 180 days. On May 30, Wally filed a petition for bankruptcy. Under the Bankruptcy Code, the debt is known as
nondischargeable.
Aaron and Noah formed a corporation for the purpose of raising money for their church charity. This is known as a/an
nonprofit corporation.
The out of existence option is a
nonstatutory option.
A misdemeanor is punishable by
one year or less of incarceration.
A shareholder is a/an __________ of a corporation.
owner
The simplest business entity with multiple people is a
partnership.
Geoff and Matilda formed an LLC. Their LLC will be most likely be treated as a __________ for tax purposes.
pass-through entity
Renate purchased common stock in XYZ Corporation, this gives her the right to
payments in dividends based on the current profitability of the company.
The first step in the patent process is for a patent seeker to
perform a database search to ensure a similar invention is not protected.
Which of the following is not an attribute of a sole proprietorship?
perpetual existence for the company.
Wilder wants a loan for his small business. He approaches Ingalls, a banker, who agrees to give him the loan on condition that Wilder sign a personal guaranty. Under these circumstances, Wilder's
personal assets will be liable in the event he defaults on the loan.
Marcelino set up a business in which he was the primary shareholder, Boxing Stars, Incorporated (BSI), to market boxing gear and clothing. The company that leased Marcelino the retail space for BSI to do business demanded that Marcelino sign a document agreeing to pay them out of his personal assets if BSI defaults on the retail lease. The document that Marcelino signed is known as a
personal guarantee.
Limited liability partnerships (LLPs) are created by states in large part to deal with the
potential liability for acts of other general partners or the debts of the partnership itself.
Landers purchased stock in Monster Truck Corporation. His stock had quasi-debt features and gave him preference rights for receiving dividends from Monster. Landers likely has __________ stock.
preferred
With regard to the sale of securities, the Securities Litigation Uniform Standards Act of 1998 is intended to
prevent private parties from instituting lawsuits against corporations in federal or state court based on state laws that punish misrepresentations or omissions of material facts.
The management of Secure Securities, Incorporated decided to go public and issued stock on the New York Stock Exchange. This is known as the
primary market.
A warrant is issued based only on
probable cause.
A pass-through entity is one in which
profits are taxed after they are distributed to individual partners.
Stan signed a contract in which he promised to pay back the party that loaned him money to purchase his house over the course of 15 years. This contract accompanied his mortgage. It is known as a
promissory note.
Tom started a business selling footballs. Before filing articles of incorporation, he arranged for a bank loan and hired three people to run his store. Tom is known in corporate law as a/an
promoter.
The type of corporation that generally has the highest number of shareholders is the
publicly held corporation.
Under the Americans with Disabilities Act, employers must make __________ accommodations for a disabled employee in the workplace.
reasonable
Cybersquatting describes the practice of
registering multiple domain names and then selling them back to companies at inflated prices.
Which of the following describes a literal patent infringement where the infringed device does more than is described in the patent application of the protected invention?
rule of addition
Charles set up a fraud scheme in which he promised investors huge returns that other investments could not match, but actually paid returns to investors from money paid by subsequent investors and pocketed the rest. Charles is
running a Ponzi scheme.
Philene was an investor in Safe Harbor Corporation (SHC) through an initial public offering. She believed she has been defrauded by false statements made by SHC's executives about the company's financial health and wants to file a lawsuit against SHC because she lost money by investing in them based on their alleged misrepresentations. Her attorney told her that to win her case, she needed to prove that the executives knew they were lying. This element is known as
scienter.
Ignatio ordered his stockbroker to purchase 1,000 shares of National Motors stock on the New York Stock Exchange. The broker purchased the shares from a large institutional investor. This is a purchase on the __________ market.
secondary
The term dissociation describes the
separation of a partner from a partnership.
The adjudicative phase of the criminal justice process includes each of the following components except
setting bail.
Brittney is the CFO of Wealthy Manufacturing, Incorporated (WMI). She made $100,000 by buying 20,000 shares of WMI's stock at $30 a share in November of 2020 and selling them for $35 a share in February of 2021. These profits would be called
short-swing profits.
Mikael, a union boss who was angry that his employer reduced benefits and refused to raise wages, organized several employees in his union to occupy the employer's building for the purposes of stopping work. This action is known as a/an
sit-in strike
Danielson opened a business in which she had unlimited liability and could avoid annual filing requirements. Danielson likely ran a business known as a
sole proprietorship.
Trade secret protections are provided through
state statutes and common law.
Registration of a trademark is
subject to an approval process through the U.S. Patent and Trademark Office.
Violet signed a contract agreeing to be primarily liable to pay off Jamilla's loan. Violet is known as a
surety.
Under disparate impact theory, a plaintiff must prove that
the evaluation methods used by an employer to hire employees resulted in statistically significant differences that adversely impacted members of a protected class.
Each of the following is a part of the Howey test for determining whether something is defined as a security except
the expectation of a return must not be the primary reason for the investment.
Both Lloyd and Harry are claiming patent protection for the same invention that each independently created. The rights to protection will be awarded to
the first to file an application for the patent.
Failco had several small debts but no realistic means of paying them off. Reggie, the owner of Failco, had not personally guaranteed any of the loans and owned no personal assets. He wants to simply shut down Failco and stop doing business and not pay off his creditors. This method is known as
the lights-out option.
Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an
tippee.
Cellupro, a company that designed and manufactured cell phones, had a unique design to their products and a particular color for their phones and packaging. This design and color is known as
trade dress
The color or shape of an item, if distinctive, is
trade dress.
Isadora was the chief financial officer of Big Band Incorporated (BBI), a publicly traded corporation. She knew that BBI was about to announce record earnings for the year, a fact not yet made public, so she purchased 1,000 shares of BBI stock before the earnings were made public. One week later when the earnings were made public, BBI stock increased in value $10 per share and Isadora immediately sold her newly purchased shares and made $10,000. Isadora has committed
traditional insider trading.
Felonies generally are punishable by
twelve months or more of incarceration.
All of the following are types of partnerships except
uniform liability partnerships.
Wilhelm has taken out a private loan from Community Home Bank (CHB). Credit was extended to him based on the fact that he had paid his loans off in the past, made a high income and was considered a good credit risk. CHB required no collateral. CHB is known as a/an
unsecured creditor.
Credit that is not collateralized is known as
unsecured debt.
Valentino patented a new and unique manufacturing process that his corporation used. This is known as a
utility patent.
Ginger declared bankruptcy and Jackie, her trustee, stopped a transfer to Thriftyco, a creditor, because she felt it gave an unfair advantage to Thriftyco over other creditors. This type of transfer that can be stopped by the trustee is known as a
voidable transfer.
Crimeco senior executives were involved in a massive fraud scheme to misrepresent their financial health. Faroq was employed by Crimeco as a regional manager and reported to state authorities about the fraud. Faroq is known in employment law as a/an
whistle-blower.
Goss led a large group of employees in his union to go on a strike for one day, but without the permission of his union. This is known as a/an
wildcat strike.
The Equal Pay Act requires that
women receive the same pay as men for substantially equal work.
Meredith owns Meredith's Boutique and has fallen behind on her payments to creditors. She wants to turn around her business and settle past debts. This is known as a
workout.
