BLAW Large Mat 4 Prep – Flashcards
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MetaRay, Inc., and Nucleo Corporation are the only suppliers in their market. They agree to coordinate their production so as to limit output and charge a higher price. Under the Sherman Antitrust Act of 1890, this is
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a prohibited restraint of trade.
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From a location in Eastern Europe, Stepan places unsolicited phone calls to Tyro and other consumers in the United States. Stepan promises Tyro and the others merchandise and credit for a nominal fee. Tyro agrees and pays the fee, but Stepan does not fulfill the promise. The Federal Trade Commission's Telemarketing Sales Rule has likely been violated by
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Stepan only.
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From a location in Africa, Idi places unsolicited phone calls to consumers in the United States to market a variety of scams. From a location in the United States, Jargo, Ltd., a foreign firm, makes similar calls to U.S consumers. Kricket, Inc., a U.S. firm in the United States, also makes such calls. The Federal Trade Commission's Telemarketing Sales Rule has likely been violated by
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Idi, Jargo, and Kricket.
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Harley is an employee of ICU Identity Systems Corporation. Harley regularly posts messages on a company-sponsored blog, which is read by employees, shareholders, and other stakeholders. According to the Securities and Exchange Commission, Harley's posts are subject to
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federal securities laws.
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Nash owes a debt to Orchard Hill Credit Union that is turned over to Pay Up, a debt collection agency. Pay Up states in a letter to Nash that "unless you notify this office within thirty days that you dispute the validity of this debt, the debt will be assumed to be valid." Under the phrasing set forth as the legal standard by the Fair Debt Collection Practices Act, this letter is misleading because it
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does not include the phrase "by the debt collector" at the end.
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Wiley trades in securities on a regional securities exchange. These trades are subject to regulation by
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the Securities and Exchange Commission.
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DeLuxe, S.A., is a French company with offices and operations located throughout Europe. With respect to the direction and control of DeLuxe and other firms in continental Europe, the prevailing coordinated model of corporate governance gives priority to the interests of a corporation's
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stakeholders - employees, managers, suppliers, customers, and the community.
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Sayer is an employee of Thorny Foliage Eradication, Inc. Sayer tweets messages about Thorny Foliage to employees and outside interested parties, including investors and others. According to the Securities and Exchange Commission, Sayer's messages are subject to
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federal securities laws.
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Etoile Metrics, S.A., a French software firm, is harmed by an exclusive-dealing scheme engineered by Flash Search, Inc., a U.S. software firm. Compared to U.S. laws, the European Union's laws
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define more conduct as anticompetitive.
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Walt, a consumer, needs medical information. On the Internet, Walt goes to social network to consult with other consumers about diagnosis and treatment. Due in part to the Food and Drug Administration's rules, pharmaceutical companies are reluctant to advertise on the Web. Thus Walt is most likely to find A. all of the necessary information in a tweet. B. accurate information online. C. incorrect information online. D. incomplete information in traditional outlets, such as television. (incorrect)
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Banners, Inc., has the power to control the market for its product. Crest Corporation and Delphic Shield Industries, Inc., agree to limit their competitiveness to increase their profits. The Sherman Antitrust Act of 1890 prohibits restraints on trade and commerce that originate from
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business combinations and conspiracies, and certain monopolistic practices.
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Deutsche Werke, GmbH., a German firm, is harmed by a price-fixing scheme engineered by Collider Industries, S.A., an international cartel. The European Union is most likely to
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actively pursue Collider and impose criminal penalties.
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DrugCo, Inc., makes and markets Evenflo, a prescription drug. Food and Drug Administration (FDA) rules require ads for prescription drugs to disclose all of the potential negative side effects. Display ads on the Web are not amenable to such lists. Thus to comply with FDA rules, on the Web DrugCo should run
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a general, disease-related search ad.
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Courtney owes a debt to Delta Bank and retains Eugene, an attorney, to advise Delta that Courtney cannot pay the debt. Eugene also tells Delta that if the debt is turned over to a collection agency, the bank should tell the agency of Eugene's representation. Delta transfers the debt to Last Chance Credit, a collection agency, but does not mention Eugene's representation. Last Chance tries to deal directly with Courtney, who then files a suit against the agency for violation of the Fair Debt Collection Practices Act. If the court rules in favor of Last Chance, it would most likely be because
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Last Chance did not have knowledge of Eugene's legal representation.
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Haruo commits a civil violation of federal securities laws. An enforcement action against Haruo can be brought by
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the Securities and Exchange Commission.
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Vid Games, Inc., is a U.S. company currently involved in significant innovation and cost and quality competition with its rivals. With respect to the direction and control of A and its competitors in the United States and other countries, different models of corporate governance exist, depending on
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the degree of capitalism in a particular nation.
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Congress leaves it to the Bureau of Prisons to oversee the promulgation of detailed regulations in areas under the agency's jurisdiction. This is
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the delegation of legislative powers.
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The Merit Systems Protection Board issues a rule. Like other administrative agencies' "legislative rules," this rule is as
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binding as a law passed by Congress.
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The U.S. Mine Safety Administration conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
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highly regulated industries.
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Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that
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hearsay can be introduced as evidence in an administrative hearing.
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The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue
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a subpoena.
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Independent regulatory agencies such as the Federal Trade Commission are
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outside the major departments of the government's executive branch.
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Sweet Treats, Inc., wants to market a new snack food. On the product's label, standard nutrition facts are
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required.
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Like other manufacturers and sellers, Happy Household Products Company packages its products with labels. Under federal law, such labels must be
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accurate and use easily understood words.
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Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with
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the Food and Drug Administration.
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GR8 Fashion, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Hott Clothes Company, GR8's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to
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draft a formal complaint.
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In the ordinary course of business, EZ Funds Corporation offers credit to Fay and other consumers and reports on the loans to credit agencies. To save time and money, EZ generally does not correct or update its reported information. This is most likely to result in
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an assessment of damages.
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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
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none of these choices.
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New Town Construction, Inc., wants to build a parking ramp to connect to its New Town Mall, both of which are on private land. For this action, an environmental impact statement is
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unnecessary.
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Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is
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required.
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Green River Energy Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Green River must install certain equipment
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before beginning operations.
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Under the Resource Conservation and Recovery Act, before being transported, hazardous waste generated by Xtreme Industries, Inc. must be properly labeled and packaged by
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Xtreme Industries, Inc.
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ChemoCorp, Inc., makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency can
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conduct an inspection of ChemoCorp's plant.
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Bread & Pastries Baking Company operates a commercial baking plant, a "major source" of pollution that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely
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a violation.
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Sunny City wants to acquire undeveloped land within the city limits to convert into a public park. Sunny City brings a judicial proceeding to obtain title to the land. This is an exercise of
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eminent domain.
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Happy Homes Construction Corporation wants to obtain a zoning variance for a part of its property. The variance must not
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substantially alter the essential character of the property.
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Tyro has the right to drive across Ula's land, which is next to Tyro's property, to reach an access road. Tyro's right is
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an easement appurtenant.
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Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elvin owns everything else on the farm¾implements, seed, and so on. The real property is owned by
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Chita only.
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Xavier owns a duplex that he leases to Yvon and Zack. Xavier may sell
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the duplex at any time.
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Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight. Gina's right is
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a license.
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An antitrust action is brought against Tri-State Transport Company, alleging the offense of attempted monopolization. To be guilty of this offense, Tri-State's attempt must have
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a dangerous probability of success.
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To drive its competitors out of a certain geographic segment of its market, Fryin' Potatoes, Inc., sets the prices of its products below cost for the buyers in that area. This is A. price discrimination. (incorrect for some reason my professor won't say???) B. a refusal to deal. C. predatory pricing. D. business acumen.
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Gourmet Foods, Inc., requires all distributors of its products to sell them at a specified minimum price. Under the Sherman Act, this is a violation
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if the anticompetitive effects outweigh the competitive benefits.
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Seaside Cannery, Inc., is one of many producers of canned seafood. Seaside refuses to sell its products to Port Harbor Restaurant Corporation. This refusal is most likely
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not a violation of antitrust law.
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Imperio Caffeine Corporation makes and sells coffee under a variety of brand names. Imperio wants to merge with Java Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes coffee and
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products that are reasonably interchangeable.
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Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100 shares. They know that Fay got her information from Dhani. When Eureka publicly announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit. Refer to Fact Pattern 24-3. Under the Securities Exchange Act of 1934, Geoff is most likely
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liable for insider trading.
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Cotton Products Corporation is a public company whose shares are traded in the public securities markets. The Securities Act of 1933 requires Cotton to disclose financial and other significant information concerning its securities in order to
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protect investors.
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Fresh Seasonal Fruit Company has assets of less than $10 million and fewer than fifty shareholders. Gourmand Pastries, Inc., has assets of more than $50 million and more than five hundred shareholders. The Securities Exchange Act of 1934 applies to
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Gourmand Pastries only.
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Lexy, a salesperson for My-T-Fine Corporation, learns that My-T-Fine will increase the dividend it pays to shareholders. Lexy buys 10,000 shares of My-T-Fine stock. When the price increases, Lexy sells the shares for a profit. Lexy would not be liable for insider trading if the information about the dividend was
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public before she bought the stock.
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Fresh Goods, Inc., wants to make an initial public offering of securities. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933. Refer to Fact Pattern 24-1. If Fresh is exempt from the federal registration requirement, Fresh is
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not necessarily exempt under a state registration requirement.
