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5 Written questions

5 Matching questions

  1. 34. On May 1, 2009, after getting angry with his father Peter, Stewie moves from California to Texas and purchases a house in Texas for $3,000,000. Stewie is rich because of his role in the TV series "Family Guy." Stewie pays cash for the house. On April 28, 2010, Stewie declares Chapter 7 bankruptcy and claims a $3,000,000 homestead exemption on his house that is normally allowed by Texas law. Under the new 2005 Bankruptcy Act, which of the following is true?

    A. Stewie would be able to exempt $0 for his house
    B. Stewie would be able to exempt $1, 500,000 for his house
    C. Stewie would be able to exempt $125,000 for his house
    D. Stewie would be able to exempt $3,000,000 for his house
    E. Stewie would be able to exempt $2,000,000 for his house
  2. 22. In the United States, Starbucks Coffee Shops are owned by the Starbucks Corporation. However, Starbucks Corporation decides to open Starbucks Coffee Shops in China. To do so, Starbucks Corporation grants the Sino Corporation, a Chinese corporation, a franchise to select and grant local franchises to owners that Sino Corporation selects throughout China. What type of franchise arrangement exists between Starbucks Corporation and Sino Corporation?

    A. Processing plant franchise
    B. Distributorship franchise
    C. Distributorship franchise
    D. Area franchise
    E. Local franchise
  3. 17. You are sitting at Starbucks coffee shop sipping on your double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Latte when you hear the two men at the next table talking. One is a nerdy looking guy with glasses and the other is a young guy in bluejeans. The two men shake hands and you hear the nerdy guy say "You got a deal. Microsoft Corporation will pay 300% premium for YouTube stock in our merger to be announced tomorrow." The young guy says "As president of YouTube Corporation, you got a deal." The two men toast with their double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Lattes. You gulp down your double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Latte and run to the nearest stockbroker and place your life savings of $500,000 on call options on YouTube stock. The next day the merger of Microsoft and YouTube is announced and you become a trillionaire. Which of the following statements is true?

    A. You are not liable for violating Section 10(b)
    B. You are liable for violating Section 10(b) under the misappropriation theory
    C. You are liable for violating Section 10(b) under the tipper-tippee theory
    D. You are liable for violating Section 10(b) as an insider
    E. You are liable for violating Section 10(b) as a temporary insider
  4. 7. (from class) John Deere Corporation, which makes and sells large farm equipment, sells a $500,000 piece of farm equipment on credit to Farmer John, a farmer. Farmer John signs a credit agreement in which he agrees to pay John Deere $100,000 plus 10% interest on the outstanding balance each July 1 for the next five years. The farm equipment is made collateral for the secured loan. John Deere files a financing statement in the state's recording office to perfect its security interest in the farm equipment. This is covered by _________________ of the Uniform Commercial Code (UCC).

    A. Article 2
    B. Article 2A
    C. Article 3
    D. Article 7
    E. Article 9
  5. 39. Which of the following is (are) true concerning a Regulation A offering?

    A. A Regulation A offering over $100,000 must have an offering statement filed with the SEC
    B. A Regulation A offering is an exempt transaction
    C. An issuer can issue up to $5 million of securities within a 12-month period
    D. A and C
    E. B and C
  1. a C. Stewie would be able to exempt $125,000 for his house
  2. b D. A and C
  3. c D. Area franchise
  4. d E. Article 9
  5. e A. You are not liable for violating Section 10(b)

5 Multiple choice questions

  1. C. Misappropriation theory
  2. D. All of the above.
  3. D. Ally is not liable because she has not breached a duty of loyalty by competing with MatchmakingLA.com
  4. A. Chapter 7
  5. D. A and C

5 True/False questions

  1. 4. Which section of the Securities Act of 1933 imposes criminal liability on defendants?

    A. Section 11
    B. Section 12
    C. Section 10(b)
    D. Section 32
    E. Section 24
    E. Section 24

          

  2. 31. Lexus Motors and Infiniti Motors sell two high-end pricey automobiles in the United States market. In order to not compete with each other and to therefore keep their prices high for their automobiles, the presidents of the two companies agree that Lexus will sell cars in the states west of the Mississippi River and Infiniti will sell cars in states east of the Mississippi River, and neither will sell cars in the others geographical territory. Which of the following rule applies in examining whether this agreement violates antitrust law:

    A. Rule of reason
    B. Tying arrangement rule
    C. Per se rule
    D. Price discrimination rule
    E. None of the above
    A. Executory contract

          

  3. 12. The Frog Inc. saga continues. Frog Inc. wants to retain its current French-socialist management during the bankruptcy proceedings. Although current management has missed the dietary changes of Americans to modern types of cuisine, management has not engaged in fraud nor wasted corporate assets. All managers agrees to obtain M.B.A. degrees from USC and become capitalist imperial dogs. They also agree to go to Charm School for one year. Management is therefore allowed to remain in place during the bankruptcy under which of the following doctrines?

    A. Reaffirmation contract
    B. Executory contract
    C. Lien release
    D. Debtor in possession
    E. Cram down
    D. Debtor in possession

          

  4. 18. Jimmy, George, Bill, and George W. form a new corporation called "Planet Palm Springs Inc.", which will operate a new theme restaurant in Palm Springs, California to cater to retirees (old people). The restaurant will have canes, walkers, oxygen tanks, and other old people memorabilia hanging from the walls, and will play nonstop recordings by Frank "Blue Eyes" Sinatra, Bing Crosby, Dean Martin, and Connie Francis. Planet Palm Springs, Inc. wants to raise $10,000,000 from investors located and living anywhere in the United States, who have little or no income or assets. Planet Palm Springs Inc. can issue these new securities under which of the following?

    A. Small offering exemption
    B. Private placement exemption
    C. Intrastate offering exemption
    D. Nonissuer exemption
    E. None of the above
    D. A and C

          

  5. 32. Which antitrust law makes price discrimination illegal?

    A. Section 1 of the Sherman Act
    B. Section 2 of the Sherman Act
    C. Section 2 of the Clayton Act
    D. Section 3 of the Clayton Act
    E. Section 7 of the Clayton Act
    D. A and C

          

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