5 Written Questions
5 Matching Questions
- 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
- 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"
- 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
- 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
- 8. Bree, Gaby, Eddie, and Lynette form "Wisteria Lane LLC" which operates a home catering service and provides food, flower, photography, and other services for weddings. It is a member-managed LLC. Which of the following is true?
A. Bree can bind the LLC to contracts with third parties
B. Bree can compete with the LLC by offering her own wedding planning and production services
C. Bree has the right to participate in the management of the LLC
D. A and C
E. A, B, and C
- a C. Per se rule
- b C. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism
- c D. Licensing
- d B. Yes, under partial discharge
- e D. A and C
5 Multiple Choice Questions
- D. A and B
- D. Ally is not liable because she has not breached a duty of loyalty by competing with MatchmakingLA.com
- D. Area franchise
- C. Chain-style
- B. Nine months
5 True/False Questions
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 → E. A and C
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 → C. Section 2 of the Clayton Act
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 → C. Section 2 of the Clayton Act
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
15. Bree, Gaby, Eddie, and Lynette form "Wisteria Lane LLC" which operates a home catering service and provides food, flower, photography, and other services for weddings. It is a manager-managed LLC. Bree and Gaby are named the managers. Which of the following is (are) true?
A. Bree and Gaby can bind the LLC to contracts with third parties
B. Eddie can bind the LLC to contracts with third parties
C. Lynette cannot bind the LLC to contracts with third parties
D. A and C
E. A, B, and C → D. A and C