5 Written questions
5 Matching questions
- 19. Chanel, Prada, Louis Vuitton, and Gucci, all snotty, high-end and expensive fashion designers of fashion designer clothes, each individually decide that they will not sell their own snotty, high-end, and expensive fashion designer clothes to Wal-Mart, Target and Costco, all discount retailers, because the proletariat Wal-Mart, Target and Costco are not the suitable outlets to sell the designers' bourgeois snotty, high-end, and expensive fashion designer clothes. Wal-Mart, Target and Costco sue Chanel, Prada, Louise Vuitton, and Gucci for violating Section 1 of the Sherman Act by engaging in an unreasonable restraint of trade. Which of the following is (are) true?
A. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal group boycott
B. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal division of markets
C. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism
D. Chanel, Prada, Louise Vuitton, and Gucci have engaged in an illegal price discrimination
E. A and D
- 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
- 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"
- 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
- 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
- a E. Section 24
- b D. A and C
- c B. Yes, under partial discharge
- d C. Chanel, Prada, Louise Vuitton, and Gucci have engaged in legal conscious parallelism
- e D. B and C
5 Multiple choice questions
- D. Licensing
- E. None of the above
- D. Area franchise
- E. None of the above
- C. three
5 True/False questions
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 → B. Yes, under partial discharge
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)
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
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 → D. A 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 → E. A, B and C