5 Written questions
5 Matching questions
- 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. Quart-Size is a rapper whose rap is no longer rapping. The sales of Quart-Size's CDs are now quart-size, so on August 1, 2009 Quart-Size files for bankruptcy. Quart-Size does not qualify for a Chapter 7 bankruptcy, so he files for and is granted a Chapter 13 bankruptcy. A five-year payment plan is approved by the Bankruptcy Court. Which of the following is true?
A. Quart-Size receives a discharge on his debts on August 1, 2009
B. Quart-Size must pay his disposable income during the five- year payment plan to a trustee, who distributes the money to Quart-Size's creditors
C. Quart-Size receives a discharge on his debts on August 1, 2014, if all the payments from his disposable income have been paid as required by the payment plan
D. A and B
E. B 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
- 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
- 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 D. A and C
- b D. Area franchise
- c A. Executory contract
- d E. A, B and C
- e E. B and C
5 Multiple choice questions
- E. Legal resale price maintenance
- A. You are not liable for violating Section 10(b)
- D. Licensing
- D. Ally is not liable because she has not breached a duty of loyalty by competing with MatchmakingLA.com
- C. Noerr doctrine
5 True/False questions
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
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
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
10. "Pinkberry" Incorporated is a company that operates a chain of franchised outlets that serve frozen yogurt, smoothies, and other desserts. The company has attained a cult-following of customers called "crackberries." Anyway, Pinkberry franchises franchisees to sell its products at small pink-colored outlets. Each Pinkberry franchisee is granted a specific territory. The Pinkberry Company provides each franchisee with the machines to make the yogurts, smoothies, and other food items, but all of these items are made at each location from yogurt, fruits, berries, and other items purchased by each franchisee. This is considered a ______________________ franchise.
B. Processing plant
E. Fu fu → C. Chain-style
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 → A. Chapter 7