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
27. Disney Company owns the trademark rights and copyrights to its main characters and their stories, such a Mickey Mouse, Pluto, Mulan, Winnie the Pooh, Donald Duck, Pocahontas, Ratatouille, Snow White, WALL-E ("EVE!"), and others. Disney Company enters into a contract with Nike Inc., an athletic wear company that produces athetic shoes, shirts, hats, and other athletic wear, that authorizes Nike Inc. to place likenesses of these characters on Nike's athletic wear. This is an example of
B. Joint venture
C. Strategic alliance
E. Area franchise
16. To keep up with the times, Frog Inc. converts its snooty high-end expensive and saucy French restaurants to French fast food restaurants serving "American Fries." However, the Depression of 2006-2012 hits and no one wants to pay to eat at fast food French restaurants. Frog Inc. is heading toward bankruptcy. This time Frog Inc. wants to surrender (hey, they are French!) and just give up and quit. This time what type of bankruptcy should Frog Inc. file?
A. Chapter 7
B. Chapter 9
C. Chapter 11
D. Chapter 12
E. Chapter 13
19. Chanel, Prada, Louis Vuitton, and Gucci, all snotty, high-end and expensive fashion designers of fashion designer clothes, each individually decide that they will not sell their own snotty, high-end, and expensive fashion designer clothes to Wal-Mart, Target and Costco, all discount retailers, because the proletariat Wal-Mart, Target and Costco are not the suitable outlets to sell the designers' bourgeois snotty, high-end, and expensive fashion designer clothes. Wal-Mart, Target and Costco sue Chanel, Prada, Louise Vuitton, and Gucci for violating Section 1 of the Sherman Act by engaging in an unreasonable restraint of trade. Which of the following is (are) true?
A. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal group boycott
B. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal division of markets
C. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism
D. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal price discrimination
E. A and D
9. Securities sold pursuant to the intrastate offering exemption are "restricted" securities (cannot be sold to out-of-state purchasers) for what period of time?
A. Six months
B. Nine months
C. One year
D. Two years
E. Three years
bC. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism
cB. Nine months
dD. Debtor in possession
eA. Chapter 7
5 Multiple Choice Questions
E. Article 9
D. A and C
D. A and B
E. None of the above
D. B and C
5 True/False Questions
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
20. Smork, a USC freshman majoring in chemistry, invents a new body cream that, if rubbed on the skin, sucks out the body fat from that location; it is non-surgery liposuction. With this cream a user can "spot" the area that needs a little thinning, rub some cream on that area, and the fat disappears! Smork names the cream "LIFO "("last in, first off") and names his new corporation that will produce the cream LIFO, Inc. The potential for LIFO is tremendous as the phone rings off the hook with calls from Oprah, Monica, Allie, Rosey, et al. LIFO, Inc. is planning on going public and is preparing the materials to file its registration statement with SEC. What can LIFO Inc. not do during the prefiling period?
A. Make offers to sell its securities
B. Sell its securities
C. Condition the market
D. B and C
E. A, B and C → E. None of the above
13. Wal-Mart, Target and Costco, all discount retailers, decide to sell Shaquille O'Neal's, an NBA superstar, new instructional video "I can't shoot free throws, but you can!" They all agree that they will all sell the popular video for $49.99 (most videos of this type are priced at $19.95) and at no other price. This is an example of which of the following?
A. Division of markets
B. Tying Arrangement
C. Price fixing
D. Resale price maintenance
E. Group boycott → A. Hart-Scott Rodino Antitrust Act
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 → B. The money becomes property of the bankruptcy estate
33. General Motors Corporation files for Chapter 11 bankruptcy. Which of the following may be accomplished in a Chapter 11 bankruptcy?
A. Automatic stay of secured debt
B. Partial discharge of unsecured debt
C. Rejection of executory contracts and leases
D. All of the above.
E. A and C → A. Executory contract