5 Written questions
5 Matching questions
- 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
- 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
- 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
- 11. Frog Inc., a chain of over 500 fancy and expensive French restaurants located throughout the United States, has failed to keep up with the times. Its snooty restaurants with snooty waiters serving snooty food now have financial statements that are the same color as the restaurant chain's red mahogany booths and red décor. Frog Inc. needs time to redecorate, change its menu to fast food French cuisine, and reinvent itself as a viable "going concern" that serves "American Fries." You are Frog Inc.'s attorney. What type of bankruptcy should Frog Inc. file for?
A. Chapter 7
B. Chapter 9
C. Chapter 11
D. Chapter 12
E. Chapter 13
- 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 D. A and C
- b B. Rule 144A
- c E. Article 9
- d C. Per se rule
- e C. Chapter 11
5 Multiple choice questions
- E. A, B and C
- D. Debtor in possession
- D. Licensing
- D. Area franchise
- C. three
5 True/False questions
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 → B. Nine months
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
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
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 → D. All of the above.
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 → E. No, because consumers have been notified that the McDonald's Corporation is not liable for the franchisee's negligent acts