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5 Written questions

5 Matching questions

  1. 26. Whole Foods Markets, LP, is the largest grocery retailer of natural and organic foods in the United States. Wild Oats Markets Inc. is the second largest grocery retailer of natural and organic foods in the United States. Whole Foods and Wild Oats propose a merger of the two companies. Which of the following antitrust laws requires the companies to notify the Federal Trade Commission and the U.S. Justice Department of the proposed merger?

    A. Hart-Scott Rodino Antitrust Act
    B. Clayton Antitrust Act
    C. Federal Trade Commission Act
    D. Robinson-Patman Act
    E. Sherman Antitrust Act
  2. 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
  3. 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
  4. 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
  5. 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
  1. a A. Hart-Scott Rodino Antitrust Act
  2. b B. Rule 144A
  3. c C. Stewie would be able to exempt $125,000 for his house
  4. d E. A and C
  5. e E. None of the above

5 Multiple choice questions

  1. E. B and C
  2. D. Debtor in possession
  3. D. A and C
  4. E. Section 24
  5. B. Nine months

5 True/False questions

  1. 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"
    B. Yes, under partial discharge


  2. 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
    C. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism


  3. 14. In 2004, Tube bought a house on the beach in Malibu, California for $500,000 in order to be closer to the waves so he can surf more often. Tube paid $100,000 cash and borrowed $400,000 in a first loan from Wells Fargo Bank secured by his Malibu house. In 2009, Tube, because he is surfing all of the time and makes no money, defaults on the loan and files and qualifies for Chapter 7 bankruptcy. Because of the 2006-2012 Depression in California, Tube's house is only worth $200,000 at the time of default. Wells Fargo Bank receives the house in bankruptcy and sells the house for $200,000 to Patience. Which of the following is (are) true?

    A. Wells Fargo Bank properly sold the house to Patience
    B. Wells Fargo Bank becomes an unsecured creditor in the bankruptcy proceeding for $200,000
    C. Wells Fargo Bank would be able to recover a deficiency judgment for $200,000 against Tube
    D. A and B
    E. A, B, and C
    D. A and B


  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
    A. Executory contract


  5. 5. Samantha, an MBA student, is a reporter for the Daily Trojan daily newspaper. She writes a daily newspaper article called "Stock Picks" wherein she recommends stocks to buy long or sell short. She always tells the truth in her articles. Samantha writes her articles the day before they are published in the Daily Trojan. Samantha is such a good analyst that she is 90% right with her recommendations and predictions. Because of her analytical ability Samantha's "Stock Picks" articles are widely read and followed by other MBAs, Wall Street investment bankers and securities professionals who follow Samantha's advice and buy and sell short the stocks she recommends, and the market always "moves" up or down based on Samantha stock picks. Samantha, however, has been investing in each company discussed in her Daily Trojan newspaper article the day before the article appears in the newspaper. The U.S. government wants to sue Samantha for a violation of Section 10(b). What theory should the government assert against Samantha?

    A. Derivative theory
    B. Tipper-Tippee theory
    C. Misappropriation theory
    D. Issuer theory
    E. Respondeat superior theory
    D. B and C