5 Written questions
5 Matching questions
- 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
- 6. (from the book) Amazon.com and BarnesandNoble.com, the two largest online book retailers in the world, together lobby Congress to pass a new federal statute requiring online book retailers to offer a minimum of 3 million titles from their company web sites in order to remain in business. Smaller book retailers who want to sell books online sue Amazon.com and BarnesandNoble.com for allegedly violating Section 1 of the Sherman Act by engaging in an unlawful restraint of trade. What defense should the defendants raise?
A. Unilateral refusal to deal
B. Conscious parallelism
C. Noerr doctrine
D. Failing company doctrine
E. Small company doctrine
- 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
- 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"
- 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).
E. No dollar limit
- a D. A and C
- b C. Noerr doctrine
- c E. B and C
- d B. $1,000,000
- e B. Yes, under partial discharge
5 Multiple choice questions
- B. Rule 144A
- C. three
- E. No, because consumers have been notified that the McDonald's Corporation is not liable for the franchisee's negligent acts
- B. The money becomes property of the bankruptcy estate
- E. None of the above
5 True/False questions
17. You are sitting at Starbucks coffee shop sipping on your double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Latte when you hear the two men at the next table talking. One is a nerdy looking guy with glasses and the other is a young guy in bluejeans. The two men shake hands and you hear the nerdy guy say "You got a deal. Microsoft Corporation will pay 300% premium for YouTube stock in our merger to be announced tomorrow." The young guy says "As president of YouTube Corporation, you got a deal." The two men toast with their double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Lattes. You gulp down your double-nonfat-half-café-hold-the-foam-4-shot-hold-the-wip-Latte and run to the nearest stockbroker and place your life savings of $500,000 on call options on YouTube stock. The next day the merger of Microsoft and YouTube is announced and you become a trillionaire. Which of the following statements is true?
A. You are not liable for violating Section 10(b)
B. You are liable for violating Section 10(b) under the misappropriation theory
C. You are liable for violating Section 10(b) under the tipper-tippee theory
D. You are liable for violating Section 10(b) as an insider
E. You are liable for violating Section 10(b) as a temporary insider → A. You are not liable for violating Section 10(b)
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 → A. Executory contract
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 → D. A and C
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
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 → D. Debtor in possession