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Question
The least common forms of securities are bonds issued by corporations.Answer
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Related questions
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Lars accuses Moe, an attorney, of committing malpractice. Malpractice is
a. a breach of ethics.
b. a defalcation.
c. a mistake in judgment.
d. professional negligence.
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Ezra, an accountant, intentionally misstates a material fact to mislead Fruit Packing Industries, Inc., a client. Fruit Packing justifiably relies on the misstatement to its detriment. Ezra is most likely liable for
a. actual fraud.
b. constructive fraud.
c. destructive fraud.
d. virtual fraud.
Q:
Yvon, an accountant, is charged with negligence by Zesty Sauce, Inc., a client. Yvon may successfully defend against the claim if she can show that
a. scienter was lacking.
b. she complied with all generally accepted accounting principles.
c. the negligence was not the proximate cause of the client's losses.
d. the negligence was only contributory.
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Estes, an accountant, contracts to perform services for Frasier. In performing those services, Estes uncovers a suspicious financial transaction. Estes is most likely not liable if he
a. acted negligently in failing to discover the transaction sooner.
b. conceals the discovery and otherwise finishes the work.
c. investigates and reports the discovery to Frasier.
d. obtains restitution from the perpetrator without Frasier's knowledge.
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An accountant who prepares a financial statement in good faith may avoid liability under Section 18 of the Securities Exchange Act of 1934.
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If a third party will be affected by a contract, the parties to the contract are in privity with the third party.
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An opinion that disclaims any liability for false or misleading financial statements is too general.
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An accountant's violation of generally accepted accounting principles is prima facie evidence of negligence.
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Miracle Products, Inc., engages in deceptive advertising when it markets its product Weight-Off as able to help consumers lose weight in their sleep. Miracle is ordered to include in all future advertising of Weight-Off the statement, "Weight-Off will not cause anyone to lose weight in their sleep." This is
a. a counteradvertising order.
b. a multiple product order.
c. bait-and-switch advertising.
d. excessive abuse of authority.
Q:
Orange Company makes computers. The company's ad states that "if you aren"t eatin" an Orange, you aren"t gettin" any "˜C." The Federal Trade Commission would consider this ad
a. false and misleading.
b. false only.
c. misleading only.
d. neither false nor misleading.
Q:
Once the government begins to clean up a waste disposal site, only the party who generated the waste must contribute to the cost.
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Corporate officers may be subject to criminal penalties for violations of the Clean Air Act.
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Federal statutes provide the basis for issuing regulations to control air pollution emanating from mobile sources only.
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All agencies of the federal government must take environmental factors into account when making significant decisions.
Q:
An injured party's common-law suit against a polluter may be dismissed for lack of standing.
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An individual is not liable for any amount of unauthorized charges on his or her credit card.
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A consumer may not be denied credit on the basis of a credit report.
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Drugs must be shown to be effective and safe before they can be marketed.
Q:
A person who receives unsolicited merchandise and keeps it without notifying the sender commits mail fraud.
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Federal law prohibits vague generalities and obvious exaggerations in advertising.
Q:
Under the Resource Conservation and Recovery Act, before hazardous waste generated by Xtreme Industries, Inc., can be transported, the waste must be properly labeled and packaged by
a. the federal Environmental Protection Agency.
b. the local Resource Conservation and Recovery Committee.
c. the state Environmental Regulatory Commission.
d. Xtreme Industries, Inc.
Q:
Oil Refining Company's plant emits hazardous air pollutants. Regarding these pollutants, the plant must use
a. the all-pollution elimination technology.
b. the best possible available technology.
c. the maximum achievable control technology.
d. the practically affordable standard technology.
Q:
Midwest Power Corporation wants to build a nuclear power plant on private land, for which a federal permit is required. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Q:
The Environmental Protection Agency (EPA) has the authority to regulate "any air pollutant." Fresher Air Group, a private organization that supports cleaner air, can file a suit against the EPA to
a. compel the EPA to act only.
b. compel the EPA to act or prevent it from acting.
c. neither compel the EPA to act nor prevent it from acting.
d. prevent the EPA from acting only.
Q:
Furniture Depot sells Gail a bedroom suite on credit. Gail fails to make the scheduled payments for six months. Furniture Depot sends her a letter, asking for immediate payment. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Q:
Global Services Corporation engages in trade practices that may violate antitrust law. The Federal Trade Commission has the power to act against unfair trade practices under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no law.
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Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products, even though there are other corn sellers from whom Nice Candies could buy. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a group boycott.
Q:
A suit is filed against Maxi Corporation, alleging that the firm committed the offense of monopolization. To determine whether Maxi has monopoly power requires looking at
a. only Maxi's size.
b. only the relevant geographical market.
c. only the relevant product market.
d. the relevant geographical market and the relevant product market.
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Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at prices substantially below the normal cost of production, Spa Selectiva hopes to drive its competitors from the market. This is
a. market power.
b. predatory pricing.
c. price discrimination.
d. price-fixing.
Q:
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations. Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition. This is
a. a horizontal restraint.
b. a lateral restraint.
c. a vertical restraint.
d. not a restraint.