Moore Final T Legal Environment of Business 14 Weeks

8. The U.S. Supreme Court ruled that sexual harassment must be committed by a member of the opposite sex in order to be actionable.

The U.S. Supreme Court ruled that sexual harassment must be committed by a member of the opposite sex in order to be actionable.

True

False

11. In  Riley v. California, the defendant, while in custody after an arrest, received phone calls from a number identified as “my house.” The police inspected the information on defendant’s phone and ascertained his address, secured a warrant, and recovered contraband which was introduced in the case against the defendant. The main issue on appeal before the U.S. Supreme Court was whether police may search the contents of an arrestee's cell phone without a search warrant.

True

False

The Fifth Amendment provides extensive protection to corporations and businesses against use of records and papers.

The Fifth Amendment provides extensive protection to corporations and businesses against use of records and papers.

True

False

Question at position 14 

Which of the following is true of the death penalty in China?

More than 50 crimes carry the death penalty, including bribery and certain other economic crimes.

Fewer than 5 crimes carry the death penalty because it is limited to crimes involving the most serious offenses such as murder.

While it is currently in effect for some crimes, it is outlawed beginning in 2015.

The death penalty is currently outlawed.

 

Question at position 15 

Most computer-aided thefts can be prosecuted under traditional state larceny laws.

True

False

 

Question at position 16 

Which of the following statements is true regarding the Sixth Amendment right to have the assistance of counsel for criminal proceedings?

The accused has the right to use his or her own attorney.

Before being taken into custody, the accused must be informed of the right to counsel.

The assistance of counsel must be effective according to a highly rigid standard.

There is no constitutional right to counsel on any appeal of a verdict.

 

Question at position 17 

An arrest is considered a seizure under the Fourth Amendment.

True

False

 

Question at position 18 

Environmental  economics can only fix the “tragedy of the commons” through a central governing authority.

True

False

 

Question at position 19 

Which of the following laws governs the quality of drinking water served by public drinking-water systems?

Clean Sip Act

Chemical Control Act

Safe Drinking Water Act

None of the responses are correct.

 

Question at position 20 

What does the Superfund Recycling Equity Act do?

It exempts recyclers from liability in private-party actions under CERCLA.

It exempts recyclers from suits brought by the state or federal government.

It provides a 10 percent federal rebate for recycling expenses incurred by corporations engaged in recycling activities.

It provides a 5 percent federal rebate for recycling expenses incurred by corporations engaged in recycling activities.

 

Question at position 21 

In  Pakootas v. Teck Cominco Metals, Inc., plaintiffs sued the defendant Canadian corporation in a U.S. court, regarding an order under CERCLA pertaining to its contamination of water in Canada that reached the United States. Was the Canadian corporation subject to the courts of the United States?

The court ruled that the defendant lacked the minimum contacts necessary to require it to submit to the jurisdiction of a U.S. court.

The court ruled that subject matter jurisdiction did not exist.

The court ruled that the defendant was subject to jurisdiction in the U.S. court.

The court ruled that the defendant lacked the minimum contacts necessary to require it to submit to the jurisdiction of a U.S. court and that subject matter jurisdiction did not exist.

Question at position 22 

According to the EPA, in order to avail itself of the innocent landowner defense, a prospective purchaser must show that, prior to the sale, it undertook “all appropriate inquiry” into the previous ownership and uses of the facility.

True

False

 

Question at position 23 

When can a corporate officer be held civilly liable under the Clean Water Act?

Corporate officers are strictly liable whenever a violation by their company is established.

Only if the corporate officer specifically ordered the unlawful discharge.

If the corporate officer had the authority to exercise control over the activity that caused the unlawful discharge or if the officer knowingly violated the act.

Corporate officers may never be held liable in an individual capacity.

 

Question at position 24 

A fundamental element of the U.S. scheme of pollution control is the policy that the polluter pays.

True

False

 

Question at position 25 

Which of the following is true regarding the authority of administering agencies?

The environmental laws give broad authority to the administering agencies to conduct on-site inspections of plant facilities and their records.

The environmental laws give limited authority to the administering agencies to conduct on-site inspections of plant facilities and their records.

The environmental laws give no authority to the administering agencies to conduct on-site inspections of plant facilities and their records.

The environmental laws give limited authority to administering agencies to conduct on-site inspections of plant records, but facilities may not be directly inspected by administering agencies.

Question at position 26

Refer to Fact Pattern 15-1. Is Lee correct in the argument that the Clean Water Act would not apply based upon the location of the plant?

​

Fact Pattern 15-1

​

Gale is the CEO of a paper company built near a river used in interstate commerce although the state in which the company is located is landlocked and not near the coast. Gale determines that a significant amount of money needs to be spent to comply with the federal Clean Water Act. Gale is already in trouble with stockholders because of low profits and does not wish to spend extra money on pollution control. Therefore, Gale instructs employees to simply dump waste into the river. Although aware of the probability of being fired if the company received a heavy fine, Gale decided to take the risk because of the risk of being fired anyway if profits did not come up. Also, while Gale believed that the Clean Air Act applied, Lee, a majority stockholder, told Gale that the Clean Water Act would not apply based upon the location of the plant.

​

Refer to Fact Pattern 15-1. Is Lee correct in the argument that the Clean Water Act would not apply based upon the location of the plant?

Yes, Lee is correct that the Clean Water Act would not apply because the state does not border the coast.

Yes, Lee is correct that the Clean Water Act would not apply because a river would not be considered a navigable waterway.

Yes, Lee is correct that the Clean Water Act would not apply because the state does not border the coast and also because a river would not be considered a navigable waterway.

No, Lee is incorrect; the river would be considered a navigable waterway; it does not matter that the state is not on the coast; and the Clean Water Act would apply.

 

Question at position 27 

The merger of an airplane manufacturer and an airplane engine manufacturer would normally be considered a conglomerate merger.

True

False

Question at position 28 

For a monopoly to be found illegal, which of the following is relevant after market power is established?

Single brand market

Multiple brand market

Collusion

Monopolistic intent

 

Question at position 29 

Without further inquiry, boycotts are  per se illegal under the Sherman Act.

True

False

 

 

Question at position 30 

Firms can incur liability under Section 2 of the Sherman Act by acquiring or maintaining monopoly power through corporate mergers or acquisitions.

True

False

31. Which of the following is true regarding monopoly law in China?

Which of the following is true regarding monopoly law in China?

Each offense is specifically set forth with no catch-all provisions.

It is not used against foreign investors.

It prevents behavior classified as abuse of dominant market position.

China lacks an antimonopoly law, although drafting has been in process for several y

32. Vertical market division between a franchisor and a franchisee may be lawful when interbrand competition is enhanced by the limitation on intrabrand competition.

True

False

33. In order to avoid an unworkable construction of the Sherman Act, the courts have construed Section 1 to prohibit only those restraints of trade that unreasonably restrict competition.

True

False

34. Market power, the power to control prices or exclude competition in a relevant market, is different from monopoly power.

True

False

 

Question at position 35 

The Robinson–Patman Act prohibits a manufacturer from making any price discrimination among its customers.

True

False

 

Question at position 36 

The labeling of medical devices is under the jurisdiction of the Food and Drug Administration.

True

False

37. Fact Pattern 17-2

​

​

Fact Pattern 17-2

​

Jamie is a pharmacist in Small City. At the direction of several physicians in Small City, Jamie begins mixing up a treatment for indigestion that is prescribed by the physicians and advertises the mixture. Jamie and prescribing physicians see a large increase in business. Other pharmacists who do not want to bother with mixing begin to complain. Jamie takes the position that it is a free country, and because there is no evidence that the mixture is harmful and it is particularly helpful for those individuals who have had reactions to other indigestion medication, it should be allowed.

​

Refer to Fact Pattern 17-2. Is it legal for Jamie to advertise the product?

No.

Only if it has been approved by the Food and Drug Administration.

Only if it is sold for under $50.

Yes.

38. Which of the following are protected categories under the Equal Credit Opportunity Act?

Gender, race, color, religion, and national origin

Gender, race, color, religion, national origin, and age

Gender, marital status, race, color, religion, national origin, and age

Gender, marital status, race, color, religion, national origin, age, and residents of disadvantaged neighborhoods

39.

Question 39 is unpinned. Click to pin. 

 

Question at position 39 

Generic drugs can be approved for use on a showing that they are identical to approved brand-name drugs.

True

False

 

Question at position 40 

Which of the following is allowed to broadband providers, according to the Open Internet Rules that went into effect in 2015?

Blocking access to legal services or devices

Eliminating pay-for-play fast lanes

Providing paid prioritization over other Internet traffic for consideration

Throttling lawful Internet traffic based on content

 

Question at position 41 

The Truth-in-Lending Act provides consumers a right of __________ whenever their home is used as collateral for credit except for original construction or acquisition.

rescission

redemption

new mortgage

refinance

. 

 

Question at position 42 

In CASE 17.2,  XYZ Two Way Radio Service, Inc. v. Uber Technologies, Inc. (2016), the court analyzed whether Uber’s claims regarding background checks and safety constituted false advertising in violation of the Lanham Act, among other claims. How did the court rule?

The court held that Uber’s statements were subjective claims that “cannot be proven true or false” and are actionable under the Lanham Act.

The court held that Uber’s statements that were challenged in the suit were nonactionable puffery under the Lanham Act.

The court held that Uber’s statements regarding its background checks were false or misleading.

The court agreed with XYZ Two Way Radio Service, Inc.’s claims that certain Uber statements constituted false advertising in violation of the Lanham Act.

Question 43 is unpinned. Click to pin. 

 

Question at position 43 

Point-of-purchase nutrition information labeling is voluntary for:

many raw foods.

vending machine products.

packages containing more than one serving.

food supplements that qualify as medicinal.

Question at position 44 

As a general rule, a real estate broker may act for more than one person in a real property transaction without the knowledge of all parties to the transaction.

True

False

 

Question at position 45 

Blair and Jimmy have been married for many years and own a home through tenancy by the entirety. Blair has grown children from a previous marriage, Andy and Casey; and Blair's will provides that Blair's interest in the home should go to them upon Blair's death. Blair dies at age 90, and a few weeks later Jimmy finds a new friend and moves that friend into the home. Andy and Casey object and tell Jimmy to get out because they have an ownership interest in the home, and they believe that Jimmy is being disrespectful to Blair's memory and wishes. Which of the following is true regarding the ownership claim of Andy and Casey?

Blair's children are correct; and each of them, along with Jimmy, have a 1/3 ownership interest in the home.

Blair's children are correct, and they each have a 25% interest in the home with Jimmy owning the other 50% interest.

Blair's children are correct, and they each have a 10% interest in the home with Jimmy owning the other 80%.

Blair's children are incorrect, and Jimmy solely owns the home.

 

Question at position 46 

The term of a ground lease cannot be specified.

True

False

 

Question at position 47 

Which of the following is NOT a type of recording statute?

Race statute

Notary statute

Pure notice statute

Race-notice statute

 

Question at position 48 

​

Fact Pattern 18-1

​

​

Fact Pattern 18-1

​

Perris wants to develop a shopping center in town and is interested in developing the center at the location of an old dump. Perris can purchase the property cheaply, and it is near one of the fastest growing areas of the city. A concern, however, centers on being held liable for all cleanup costs. Perris has heard about federal and state funds that may be available; but worries that purchase of the property knowing that contamination is likely there, will make it ineligible to participate in government assistance programs for cleanup. Perris decides to discuss the problem with Bailey, a law student studying environmental law.

​

Refer to Fact Pattern 18-1. What should Bailey advise Perris regarding the shopping center plans?

Perris should forget the project because it would be ineligible for any cleanup assistance and, as owner, Perris would be individually liable for the entire project.

Perris should buy the property without any investigation and deny knowledge of contamination if later questioned, because under federal law only a purchaser who had full and informed knowledge of contaminants when making the purchase can be held liable.

Perris should incorporate because, although an individual is liable for the entire costs of cleanup, a corporation is not.

By taking appropriate steps to become a bona fide prospective purchaser, Perris can avoid liability for legacy contamination.

 

Question at position 49 

In a(n) __________ listing, the seller grants to a single broker the right to find a ready, willing, and able purchaser for the property for a specified period of time.

exclusive

open

net

broker

 

Question at position 50 

What is generally meant by a reference to a triple net industrial lease?

The tenant pays all taxes, insurance, and operating maintenance expenses.

The lessor pays all taxes, insurance, and operating maintenance expenses.

The tenant pays insurance and operating maintenance expenses, but the lessor pays taxes.

The lessor pays insurance and operating maintenance expenses, but the tenant pays taxes.

Question at position 51 

Shea has a great farm bordering on a river and plans to build a house on a cliff overlooking the water. Shea was also considering building a couple of guest cottages to rent to vacationers. One day a land conservatory came to Shea and asked to have the land designated as a pristine area whereby no development or building could take place. Shea told them to get lost. Subsequently, the jurisdiction in which Shea lived had passed a regulation permanently prohibiting riverfront owners in the area from building any structures within one half mile of the river. There had been no such restriction in the state or county previously, and Shea suspects that the regulation is part of a plot to force landowners to agree to the request of the land conservatory. Shea tells the builder to go ahead with plans to construct the home because the government cannot take land through excessive regulation. Is Shea correct that the government cannot take land through excessive regulation?

Shea is incorrect, although if the government action constitutes a taking, compensation to the landowner must be provided.

Shea is incorrect, and no compensation to the landowner is required.

Shea is incorrect, although she would only be entitled to compensation for any lost profits that can be established.

Shea is correct, and the regulation would be overturned by a federal court.

 

Question at position 52 

Under the Revised Uniform Partnership Act, which all states have adopted, a  general partnership agreement may be express or implied.

True

False

 

Question at position 53 

Sage Smith works as a laser technician for a local dermatology center consisting of physicians operating under a partnership agreement. Sage purchased supplies through the mail from a medical supply facility totaling $5,000, signing the contract agreeing to pay for the supplies under the name, Sage Smith. A few weeks later the dermatologists became embroiled in a bitter dispute regarding profits and terminated the partnership. Unfortunately, the partners were not aware of the debt owed to the medical supply facility; and the bill remained unpaid. Sage received a bill from the supply company for $5,000. Is Sage liable to the medical supply company, and why or why not?

No, because Sage was only employed as a technician.

No, because the medical supply facility should have asked for proper identification.

Yes, because the contract was signed in Sage's name.

Yes, but only because the partnership terminated.

 

Question at position 54 

A partnership may acquire property in the individual partners' names.

True

False

Question 55 is unpinned. Click to pin. 

 

Question at position 55 

The __________ set forth the steps that must be taken to establish a corporation in a state.

Uniform Federal Rules

corporate statutes of each state

corporate bylaws

corporate charter requirements

 

Question at position 56 

B corporations have no duty to maximize shareholder value even when there is a change of control.

True

False

Question at position 57 

An S corporation would likely be used as the corporate form for a business intending to raise money from venture capitalists.

True

False

 

Question at position 58 

Which of the following is true regarding the effect of the death of a partner on a general partnership?

Unless there is an agreement to the contrary, the partnership dissolves upon the death of a partner.

Unless there is an agreement to the contrary, the partnership ceases to exist 10 days after the death of any partner.

The remaining partners must by operation of law continue the partnership for at least one year.

Within 90 days the remaining partners may elect to continue the partnership.

. 

 

Question at position 59 

Five accountants have formed an organization within which they will provide their services. What type of organization have they most likely chosen and why?

They have formed a corporation in which members are liable for their own malpractice but not for the malpractice of other members.

They have formed a partnership because members are not liable for their own malpractice or for the malpractice of other members because recovery for malpractice may only be obtained from assets of the partnership itself.

They have formed a limited liability partnership because members are liable for their own malpractice but not for the malpractice of other members.

They have formed a corporation because the tax structure is most beneficial to the five of them this way.

 

Question at position 60 

C corporations are taxed as a pass-through entity.

True

False

Question 61 is unpinned. Click to pin. 

 

Question at position 61 

In Case 20.4  Jones v. H.F. Ahmanson & Co. (1996), the court ruled that the majority shareholders who transferred their shares to a holding corporation, then took it public without allowing the minority to exchange their shares, breached their fiduciary duty to the minority shareholders. What did the court award to the minority shareholders in the way of damages?

The court awarded damages that would place the minority shareholders in a position at least as favorable as the position the majority shareholders had created for themselves.

The court awarded the majority shareholders' shares to the minority shareholders.

The court restored the company to its former nonpublic status and granted the issuance of enough shares given to minority shareholders to collectively make them a majority shareholder.

The court instructed the company to create a number of new board seats to represent minority shareholders equal to the number of board members representing majority shareholders.

. 

 

Question at position 62 

In CASE 20.1  Smith v. Van Gorkom (1985), plaintiff-shareholders alleged the directors were grossly negligent in failing to inform themselves adequately before making a decision about a merger. How did the court rule and why?

For plaintiff-shareholders, because the board failed to obtain adequate information on merger terms and therefore was not protected by the business judgment rule.

For directors, because the board was protected by the business judgment rule since there was no conflict of interest.

For the directors, but the board was not protected by the business judgment rule but rather by the business merger rule.

For the directors, because the board was protected by the business judgment rule since fraud could not be established.

 

Question at position 63 

The Securities and Exchange Commission recognizes the affirmative responsibility of officers and directors under federal securities laws to ensure the accuracy and completeness of public company filings with the SEC.

True

False

Question 64 is unpinned. Click to pin. 

 

Question at position 64 

The Delaware Supreme Court has held that, regardless of the circumstances, a majority shareholder may never freeze out the minority shareholders.

True

False

 

Question at position 65 

Controlling shareholders, but not officers or directors, of a corporation may use the corporation's confidential information for personal gain.

True

False

 

Question at position 66 

The duty of care includes the duty to make informed decisions.

True

False

Question at position 67 

A person who owns less than a majority of shares in a corporation may still be a controlling shareholder.

True

False 

Question at position 68 

A shareholder derivative suit is a lawsuit by:

shareholders on behalf of the corporation.

the shareholders directly.

the controlling shareholders on behalf of the majority shareholder.

the corporation.

 

Question at position 69 

Any security offered by the U.S. government or any national bank would be considered an exempt security under the 1933 Act's registration requirements.

True

False

 

Question at position 70 

Under the Securities Act of 1933, an investor may bring a private suit for damages.

True

False

. 

 

Question at position 71 

Under Section 13 of the 1934 Act, any person acquiring beneficial ownership of more than _____ of the equity shares of a reporting company must file a Schedule 13D providing information regarding the acquisition within ten days after crossing the designated ownership mark.

3%

5%

25%

51%

 

Question at position 72 

According to the SEC, a hyperlink embedded within a prospectus causes the hyperlinked information to be treated as part of the prospectus.

True

False

Question 73 is unpinned. Click to pin. 

 

Question at position 73 

Investment banking firms are prohibited by federal law from underwriting public offerings of securities.

True

False

 

Question at position 74 

If an issuer makes successive sales within a limited period of time, the SEC may __________ the successive sales, resulting in the loss of a private-offering exemption.

restrict

register

integrate

qualify

 

Question at position 75 

Which of the following is NOT part of the  Howey test?

Scienter

An investment of money

Common enterprise

Profits obtained solely through the efforts of others

 

Question at position 76 

The term "security," for purposes of the Securities Act of 1933, is narrowly interpreted to include only such traditional investments as a stock or a bond.

True

False

 

Question at position 77 

Well-known seasoned issuers may make automatic shelf registration offerings that are effective immediately on filing a registration statement with the SEC.

True

False

. 

 

Question at position 78 

In determining materiality, a court will consider several factors, including all of the following EXCEPT:

an increase in the stock price after public announcement of a merger.

whether the information comes from an insider.

whether the information was sent through the mail.

whether information concerning a potential acquisition is accompanied by implied certainty.

. 

 

Question at position 79 

Scienter requires more than mere negligence or lack of due care.

True

False

 

Question at position 80 

The Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act) provides that "political intelligence" firms, but not Congressional staff,  can be liable for trading based on material nonpublic information derived from the officials' positions. ​

True

False

Question at position 81

In CASE 22.3  Halliburton Co. v. Erica P. John Fund, Inc. (2014), the U.S. Supreme Court considered the __________ theory, as well as the question a defendant in a securities fraud trial should be allowed to present evidence to challenge the __________. 

truth-on-the-market;  Levinson presumption of reliance

efficient capital market;  Basic presumption of reliance

fraud-on-the-market;  Basic presumption of reliance

bespeaks doctrine;  Basic presumption of scienter

 

Question at position 82 

The SEC itself has criminal enforcement power.

True

False

 

Question at position 83 

A right of action under section 10(b) may expire before any plaintiffs discover they have been wronged or even before damages have been suffered at all.

True

False

 

Question at position 84 

​

​

Fact Pattern 22-1

​

Thanh was hired by Food Corporation to handle a products liability lawsuit brought against it alleging that it distributed dangerous dog biscuits. Thanh's investigation brought to light facts establishing that the biscuits were not defective and that the problem actually involved improper retention policies on the part of retailers. Thanh is aware that this information will result in the stock of Food Corporation increasing dramatically. Thanh immediately buys shares of Food Corporation and tells a family member, Fran, about the expected increase as well. Thanh tells Fran in order to borrow money from Fran for the trade. Fran initially resists because of training in business law and a concern that trading on the information would violate federal law, but ends up going along with Thanh. Thanh's suspicions come true. The lawsuit is dismissed, and the stock increases dramatically. Within a month, an investigator from U.S. Attorney's Office interviews Thanh regarding trades both Thanh and Fran made.

 

Refer to Fact Pattern 22-1. Is there a basis upon which to hold Fran liable for a securities violation based upon Fran's receipt and use of the information?

No, because Fran had no duty toward Food Corporation.

Yes, Fran could be held liable as a tipper.

Yes, Fran could be held liable as a tippee.

Yes, Fran could be held liable as a remote tippee.

 

Question at position 85 

Drug Company X reports the introduction of a new pill that is guaranteed to result in weight loss with no side effects. The information was advertised in connection with a public offering of stock of the company's stock. Later, it becomes apparent through additional testing that unfortunately the new pill also results in premature hair loss, a material issue. Misha is the president of Company X and is pleased with sales of the drug but recognizes that the drug can no longer be advertised as having no side effects. Still, Misha does not believe any misrepresentations were made because Misha was not aware of the hair loss side effect when previous statements were made. Misha decides to do nothing. Is this decision  correct as far as Rule 10b-5 is concerned?

Yes, because Misha has no duty to disclose later test results.

Yes, because Misha has no duty to disclose later test results that involve only cosmetic issues.

Yes, because Misha has no duty to disclose later test results that involve issues that are not life threatening.

No, Misha made the wrong decision because of an obligation to disclose the results.

 

Question at position 86 

If a borrower fails to repay a secured loan, the lender may foreclose on the collateral.

True

False

 

Question at position 87 

One popular method in Chapter 11 cases is called a(n) __________ bankruptcy, in which the company solicits votes on its plan of reorganization prior to filing bankruptcy.

prepackaged

cramdown

workout

confirmation

 

Question at position 88 

Which of the following is true of the automatic stay in a bankruptcy filing?

It is the most immediate and dramatic advantage of any bankruptcy filing.

It instantly resolves most litigation and collection activities against the debtor.

It prevents further loss of income to the business.

It prevents bankruptcy court from authorizing creditors to resume collection efforts.

 

Question at position 89 

Barrett, who has several creditors and a small amount in savings, goes bankrupt. Barrett owes XYZ Bank $200,000 for which Barrett’s home was used as collateral. XYZ Bank properly perfected its interest in the home. Barrett additionally owes $3,000 in alimony; $50,000 in unsecured credit card bills; and $5,000 in unsecured debt to a friend, Taliesin. After all exemptions are satisfied, $205,000 from the sale of the home and $5,000 in a small bank account remain for distribution to creditors. Which of the following is true regarding priority?

All funds are added together and disbursed to the claimants based upon the percentage of each creditor's claim.

Taliesin has first priority; the credit card companies are then paid; and XYZ Bank is entitled to any remainder.

XYZ Bank receives $200,000 from the sale of the home; the ex-spouse receives $3,000; and the remainder is divided between the credit card companies and Taliesin.

Taliesin has first priority; XYZ Bank is then paid; and the credit card companies divide the remainder.

Question at position 90 

Which of the following is considered a negative covenant?

A borrower will keep the lender informed of its financial condition.

A borrower will maintain insurance policies.

A borrower may not incur additional debt beyond a specified amount.

A borrower will inform the lender of any material adverse change in its operations or financial condition.

 

Question at position 91 

Mirin has filed for Chapter 7 bankruptcy relief. Mirin had borrowed money from a best friend, Rene, for the purchase of a car. Mirin really wants to repay Rene, but does not want to jeopardize the bankruptcy relief and discharge of a number of other debts. What option, if any, is open to Mirin?

No options are open to Mirin because any payment to Rene would be considered a voidable preference.

Mirin can reaffirm the debt to Rene, and the bankruptcy judge has no authority to interfere in that decision.

Mirin can reaffirm the debt to Rene, but the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Mirin's best interest.

Mirin can reaffirm the debt to Rene but only up to 50 percent of the maximum amount owed, and the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Mirin's best interest.

. 

 

Question at position 92 

A guaranty that covers all future obligations of the primary debtor to a lender is referred to as a __________ guaranty.

continuing

restricted

primary

performance

93. Chapter 13 does not provide a bankruptcy discharge for corporations.

True

False

Question 94 is unpinned. Click to pin. 

 

Question at position 94 

Section 301 of the Trade Act of 1974 is the principal U.S. statute addressing unfair foreign practices affecting U.S. exports of goods or services.

True

False

 

Question at position 95 

In CASE 24.2  Morrison v. National Australia Bank Ltd. (2010), the U.S. Supreme Court ruled for the plaintiffs in the case against foreign and American defendants for misconduct in connection with securities of a foreign issuer that were purchased on foreign exchanges.

True

False

 

Question at position 96 

"National treatment" prohibits WTO members from discriminating against imported products in favor of "like products" produced domestically.

True

False

 

Question at position 97 

When internationally accepted arbitration rules are used in conjunction with the parties' own methods of selecting an arbitration panel, it is known as a(n) __________ arbitration.

multinational

neutral

ad hoc

private

 

Question at position 98 

Codification is a process by which existing civil law positions are restated as case precedents.

True

False

 

Question at position 99 

Civil law systems are based on British law.

True

False

 

Question at position 100 

What is the act-of-state doctrine, and how is it generally applied by U.S. courts?