5 Written questions
5 Matching questions
- 40. On August 1, 2009, Ethel qualifies for and files a voluntary petition for bankruptcy under Chapter 7. Her petition for Chapter 7 bankruptcy is accepted by the Bankruptcy Court and the Chapter 7 bankruptcy proceedings begin. On November 1, 2009, Ethel's Grandmother dies and Grandmother leaves her entire $1,000,000 fortune to Ethel. Which of the following is true?
A. Ethel can keep all of the money
B. The money becomes property of the bankruptcy estate
C. One-half of the money becomes property of the bankruptcy estate
D. One-third of the money becomes property of the bankruptcy estate
E. None of the above
- 25. Oprah is president of Dieter's, Inc. The common stock of Dieter's is listed on the New York Stock Exchange ("NYSE"). The stock price of Dieter's goes up and down with Oprah's weight; therefore USC MBA students stay at home every afternoon and watch the Oprah TV show to see Oprah's weight in making their investment decisions; the MBA students fail to attend their portfolio analysis course at the USC MBA program that is offered at the same time as the Oprah TV show. On August 1, 2009, Oprah purchases 1,000 shares of Dieter's common stock for $100 per share over the NYSE. She does not possess any inside information. On November 1, 2009, Oprah leaves her job at Dieter's Inc. to become president of a rival company, Weight Watchers, Inc. On January 1, 2010, Oprah sells the 1,000 shares of Dieter's stock for $150 per share. She does not possess any inside information. Oprah is liable for violating which of the following?
A. Section 16(b) of the Securities Exchange Act of 1934
B. Section 10(b) of the Securities Exchange Act of 1934
C. Section 27 of the Securities Exchange Act of 1934
D. Section 5 of the Securities Act of 1933
E. None of the above
- 6. (from the book) Amazon.com and BarnesandNoble.com, the two largest online book retailers in the world, together lobby Congress to pass a new federal statute requiring online book retailers to offer a minimum of 3 million titles from their company web sites in order to remain in business. Smaller book retailers who want to sell books online sue Amazon.com and BarnesandNoble.com for allegedly violating Section 1 of the Sherman Act by engaging in an unlawful restraint of trade. What defense should the defendants raise?
A. Unilateral refusal to deal
B. Conscious parallelism
C. Noerr doctrine
D. Failing company doctrine
E. Small company doctrine
- 38. Dr. Phil and Dr. Kevorkian are doctors and member-owners of "Beverly Hills Liposuction, LLP," a limited liability partnership (LLP) engaged in the practice of medicine. The doctors provide liposuction surgery whereby they surgically remove excess fat from patients to make their patients look skinnier. While performing a liposuction surgical operation on J-Lo's convex butt, Dr. Phil sucks out too much fat and J-Lo becomes disfigured with a concave butt. Since Liposuction LLP has no money, J-Lo sues Dr. Phil and Dr. Kevorkian to recover monetary damages for her injuries. Which of the following statements is (are) true?
A. Dr. Phil is liable
B. Dr. Kevorkian is liable
C. Dr. Kevorkian is not liable
D. A and B
E. A and C
- 36. (from the book) Which of the following rules permits "qualified institutional investors" to purchase unregistered securities without being subject to the one year holding period of most exempt offerings?
A. Rule 144
B. Rule 144A
C. Rule 506
D. Rule. 147
E. Rule 504
- a E. A and C
- b C. Noerr doctrine
- c E. None of the above
- d B. The money becomes property of the bankruptcy estate
- e B. Rule 144A
5 Multiple choice questions
- D. Debtor in possession
- C. Price fixing
- D. Area franchise
- D. A and C
- D. A and B
5 True/False questions
35. Under federal securities law, the Securities and Exchange Commission (SEC) can obtain a civil penalty up to _________ times the illegal profits gained by insider trading.
E. ten → E. Section 24
24. The "Howey test" is used to determine whether a sale of something is an "investment contract" and therefore a security that is subject to federal securities laws. Which of the following is not an element of the Howey test?
A. Expect to make profits off the significant effort of others
B. Investment of money
C. Common enterprise
D. Oil, gas, and mineral interest
E. None of the above → C. Chain-style
28. General Motors Corporation is (was) a major manufacturer of automobiles, trucks, SUVs, and other vehicles in the United States. General Motors has franchise agreements with 2,000 independent automobile dealerships across the United States that are independently owned businesses that sell General Motors vehicles. General Motors (who is more like a lieutenant than a general) sales have dropped 50% over the past two years. General Motors (whose "L" is much greater than its "a") files for Chapter 11 reorganization bankruptcy. General Motors wants to eliminate 1,000 of the automobile dealer franchises even though each of these franchises has ten more years to go before their expiration date. General Motors would ask the Bankruptcy Court to allow it to rescind 1,000 dealer contracts under which of the following doctrines?
A. Executory contract
B. Automatic stay
C. Discharge of debts
D. Antideficiency statute
E. The 1,000 dealership contracts cannot be avoided by General Motors → A. Executory contract
1. The 2005 Bankruptcy Act made it harder for individuals to qualify for Chapter 7 bankruptcy. Which of the following test(s) is (are) included in the 2005 Act to determine if an individual qualifies for Chapter 7 bankruptcy?
A. Rights Test
B. Means Test
C. Median Income Test
D. B and C
E. A, B and C → B. The money becomes property of the bankruptcy estate
23. Planet Hollywood, Inc., a chain of over 100 restaurants worldwide, has failed to keep up with the times. Its financial statements now are now in the same shape as the restaurant chain' décor. Planet Hollywood needs time to redecorate, change its menu, and reinvent itself as a viable "going concern," Planet Hollywood files for chapter 11 Bankruptcy. Planet Hollywood has $100 million in unsecured debt but wants to come out of bankruptcy with only $40 million of unsecured debt. Planet Hollywood files a plan of reorganization in which it proposes to do away with $60 million of unsecured debt. Is this possible?
A. Yes, under the automatic stay rule
B. Yes, under partial discharge
C. Yes, under executory contract
D. No, no unsecured debt can be reduced under a Chapter 11 bankruptcy
E. No, unless Planet Hollywood proves "undue hardship" → C. Chapter 11