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5 Written questions

5 Matching questions

  1. 12. The Frog Inc. saga continues. Frog Inc. wants to retain its current French-socialist management during the bankruptcy proceedings. Although current management has missed the dietary changes of Americans to modern types of cuisine, management has not engaged in fraud nor wasted corporate assets. All managers agrees to obtain M.B.A. degrees from USC and become capitalist imperial dogs. They also agree to go to Charm School for one year. Management is therefore allowed to remain in place during the bankruptcy under which of the following doctrines?

    A. Reaffirmation contract
    B. Executory contract
    C. Lien release
    D. Debtor in possession
    E. Cram down
  2. 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
  3. 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
  4. 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
  5. 29. The small offering exemption exempts the sale of securities not exceeding $__________ during a 12-month period from registration with the Securities Exchange Commission (SEC).

    A. $500,000
    B. $1,000,000
    C. $10,000,000
    D. $100,000,000
    E. No dollar limit
  1. a D. B and C
  2. b B. $1,000,000
  3. c D. Debtor in possession
  4. d D. A and C
  5. e E. None of the above

5 Multiple choice questions

  1. A. You are not liable for violating Section 10(b)
  2. D. Licensing
  3. B. Rule 144A
  4. A. Hart-Scott Rodino Antitrust Act
  5. C. Per se rule

5 True/False questions

  1. 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


  2. 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. B and C


  3. 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
    C. three


  4. 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
    D. A and C


  5. 13. Wal-Mart, Target and Costco, all discount retailers, decide to sell Shaquille O'Neal's, an NBA superstar, new instructional video "I can't shoot free throws, but you can!" They all agree that they will all sell the popular video for $49.99 (most videos of this type are priced at $19.95) and at no other price. This is an example of which of the following?

    A. Division of markets
    B. Tying Arrangement
    C. Price fixing
    D. Resale price maintenance
    E. Group boycott
    C. Price fixing