LAW531 Business Law Week 5 QUIZ 100% CORRECT ANSWERS

·  1

In order to prevent and clear hazardous wastes that increase mortality or serious illness, the federal government established a specific method to finance the cleaning of polluted areas by enacting what statute?

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The Superfree Act

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The Insecticide, Fungicide, and Rodenticide Act

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The Comprehensive Environmental Response, Compensation, and Liability Act

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The Toxic Substances and Control Act

·  2

In 1970, Congress established an administrative agency to enforce statutes enacted to protect the air and water of this country. What is the name of this agency?

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Army Corps of Engineers Agency

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National Ambient Air Quality Standards Agency

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Environmental Protection Agency

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Air Quality Control Agency

·  3

The Sarbanes-Oxley Act is intended to increase the confidence of the public and investors through increasing which of the following?

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Corporate veil

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Separation of powers

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Director complacency

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Corporate governance  

·  4

According to the provisions set forth by the Sarbanes-Oxley Act, which federal government agency may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company?

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Federal Communications Commission

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Federal Reserve System

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United States International Trade Commission

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Securities and Exchange Commission

·  5

Unless otherwise stated in the articles of incorporation, a quorum to hold a meeting of the shareholders is generally defined as which of the following?

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The number of registered shareholders eligible to vote at a given time

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A majority of shareholders required to be present to vote on a corporate action

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A committee of directors selected to vote on a corporation action

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The number of shareholder votes necessary to pass an action

·  6

The Sarbanes-Oxley Act prohibits publicly traded companies from making personal loans to whom?

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Its legal counsel

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Its majority shareholders

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Its executive officers or directors

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Its certified public accountants

·  7

Officers of a corporation typically can have which types of agency authority to bind the corporation?

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Express, transparent, and implied

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Express, implied, and apparent

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Express, applied, and apparent

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Express, transparent, and applied

·  8

If a corporate officer in the position of secretary intentionally takes over the powers provided to the treasurer in the corporate documents, what fiduciary duty does that corporate secretary breach?

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Duty of loyalty

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Duty of good faith and fair dealing

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Duty of care

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Duty of obedience

·  9

If a corporate officer or director acts in a manner to make use of an advantage that he or she knows will only benefit himself or herself and deprives the corporation of that advantage, what breach of fiduciary duty has been committed?

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Duty of loyalty by self-dealing

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Duty of care by violation of the business judgment rule

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Duty of loyalty by usurping a corporate opportunity

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Duty of obedience by competing with the corporation

·  10

Which of the following is true of the Federal Trade Commission?

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It is a branch of the U.S. Supreme Court

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It is a temporary commission created by executive order that has become permanent

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It is a corporation subsidized by the federal government

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It is a federal agency created by Congress

·  11

Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker safety rules. As a result, there have been an increased number of on-site accidents and several construction workers have sustained serious injuries. Which of the following powers will allow an administrative agency to bring agency proceedings against Tuff-Steele Constructions?

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Rulemaking

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Judicial authority

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Executive power

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Licensing

·  12

Which of the following powers do administrative agencies typically have?

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Statute interpretation, law enforcement, and mediation

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Rulemaking, statute interpretation, and dispute adjudication

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Dispute adjudication, mediation, and rulemaking

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Law enforcement, statute interpretation, and dispute resolution

·  13

Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?

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Failing to anticipate a drop in the consumer demand of the company’s product

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Failing to predict the startup of a new competitor

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Failing to predict a raw materials shortage resulting from a natural disaster

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Failing to react appropriately to a severe rise in the prime interest rate

·  14

In order to protect wildlife that may be subject to scarcity, which Executive Branch cabinet member designates which species of wildlife may be endangered or threatened?

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Secretary of Health and Human Services

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Secretary of the Interior

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Secretary of Commerce

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Secretary of Homeland Security

·  15

Under what system of corporate voting by shareholders can a minority shareholder achieve success in electing someone to the board of directors?

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Cumulative voting

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Absentee voting

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Straight voting

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Proxy voting