1. If a manager engages in self-dealing, which of the following answers will NOT protect him from a finding that he violated the business judgment rule: A. The disinterested members of the board approved the transaction B. The transaction was of minor importance to the company C. The disinterested shareholders approved the transaction D. The transaction was entirely fair to the corporation 2. The duty of care: A. Is not a requirement of the business judgment rule B. Protects directors who make an uninformed decision if it was entirely fair to the company C. Protects a decision that has a rational business purpose, even if the activity was illegal D. Will not protect directors who make a decision that harms the company 3. Under the Williams Act: A. If shareholders offer more stock than the bidder wants, it must purchase shares pro rata B. Target companies must reveal the names of any shareholders who acquire more than 5 percent of its stock C. A bidder must file a disclosure statement at least 24 hours before the tender offer begins D. Once a shareholder has accepted a tender offer, she cannot withdraw it 4. When Attack made an offer to acquire the stock of Target, the Target board welcomed the offer. Not so when Francis Co. also indicated an interest in Target. In its negotiations with Francis, the Target board of directors failed to reveal that Microsoft had offered to pay $450 million for Target’s patent portfolio. Francis made an offer that was slightly lower than Attack’s. Which of the following statements is true? A. The Target board has the right to sell the company to whomever it wants. B. The Target board must appoint a special committee of disinterested directors to assess both offers. C. The Target board has no obligation to Francis, because its offer was lower than Francis’s. D. The Target board had an obligation to tell Francis about the Microsoft offer because, if it had known, it might have made a higher offer. 5. Oil Co. was a controlling shareholder of Pogo, a company that drilled for oil and gas in the Gulf of Mexico. When some additional leases became available, Oil Co. purchased all of them for itself. Which of the following statements is true? A. To avoid liability, Oil Co. had to offer the leases to Pogo’s board of directors. B. To avoid liability, Oil Co. had to offer the leases to Pogo’s other shareholders. C. Oil Co. could avoid liability by proving that Pogo could not afford to pay for the additional leases. D. Both (a) and (b). E. (a), (b) and (c).
> A 1.50-m cylindrical rod of diameter 0.500 cm is connected to a power supply that maintains a constant potential difference of 15.0 V across its ends, while an ammeter measures the current through it. You observe that at room temperature (20.0°C) the amm
> At room temperature, what is the strength of the electric field in a 12-gauge copper wire (diameter 2.05 mm) that is needed to cause a 4.50-A current to flow? (b). What field would be needed if the wire were made of silver instead?
> (a). What is the resistance of a Nichrome wire at 0.0°C if its resistance is 100.00 Ω at 11.5°C? (b). What is the resistance of a carbon rod at 25.8°C if its resistance is 0.0160 Ω at 0.0°C?
> Temperature coefficients of resistivity are given in Table 25.2. Table 25.2: (a). If a copper heating element is connected to a source of constant voltage, does the electrical power consumed by the heating element increase or decrease as its temperat
> A hollow aluminum cylinder is 2.50 m long and has an inner radius of 2.75 cm and an outer radius of 4.60 cm. Treat each surface (inner, outer, and the two end faces) as an equipotential surface. At room temperature, what will an ohmmeter read if it is co
> A current-carrying gold wire has diameter 0.84 mm. The electric field in the wire is 0.49 V/m. What are (a). the current carried by the wire; (b). the potential difference between two points in the wire 6.4 m apart; (c). the resistance of a 6.4-m leng
> A strand of wire has resistance 5.60 µΩ. Find the net resistance of 120 such strands if they are (a). placed side by side to form a cable of the same length as a single strand, and (b). connected end to end to form a wire 120 times as long as a single s
> A cylindrical tungsten filament 15.0 cm long with a diameter of 1.00 mm is to be used in a machine for which the temperature will range from room temperature (20°C) up to 120°C. It will carry a current of 12.5 A at all temperatures
> A wire 6.50 m long with diameter of 2.05 mm has a resistance of 0.0290 Ω. What material is the wire most likely made of?
> A 14-gauge copper wire of diameter 1.628 mm carries a current of 12.5 mA. (a). What is the potential difference across a 2.00-m length of the wire? (b). What would the potential difference in part (a) be if the wire were silver instead of copper, but a
> A copper wire has a square cross section 2.3 mm on a side. The wire is 4.0 m long and carries a current of 3.6 A. The density of free electrons is 8.5 × 1028/m3. Find the magnitudes of (a). the current density in the wire and (b). the electric field in
> During lightning strikes from a cloud to the ground, currents as high as 25,000 A can occur and last for about 40 µs. How much charge is transferred from the cloud to the earth during such a strike?
> Current passes through a solution of sodium chloride. In 1.00 s, 2.68 × 1016 Na+ ions arrive at the negative electrode and 3.92 × 1016 Cl- ions arrive at the positive electrode. (a). What is the current passing between the electrodes? (b). What is the
> The current in a wire varies with time according to the relationship I = 55 A – (0.65 A/s2) t2. (a). How many coulombs of charge pass a cross section of the wire in the time interval between t = 0 and t = 8.0 s? (b). What constant current would transpo
> You have two capacitors and want to connect them across a voltage source (battery) to store the maximum amount of energy. Should they be connected in series or in parallel?
> A point charge q1 = +2.40 µC is held stationary at the origin. A second point charge q2 = -4.30 µC moves from the point x = 0.150 m, y = 0 to the point x = 0.250 m, y = 0.250 m. How much work is done by the electric force on q2?
> 1. The town of Sanford, Maine, decided to auction off a lot it owned. The town advertised that it would accept bids through the mail, up to a specified date. Arthur and Arline Chevalier mailed in a bid that turned out to be the highest. When the town ref
> Ramona was indicted on charges of real estate fraud. During a legal search of her home, the police found a computer with encrypted files. Would it be a violation of her Fifth Amendment right against self-incrimination to force her to unencrypt these file
> Officer Trottier stopped Marie Winfield for driving 20 miles over the speed limit. He then became suspicious because her son would not make eye contact and she was eating a Powerbar in a “hurried manner.” The officer asked for and Winfield granted him pe
> A police officer in North Carolina stopped Nick’s car because it had a broken brake light. Nick allowed the officer to search the car and, during the search, the officer found cocaine. It turns out that the original stop was invalid because drivers in No
> Hiring relatives of foreign officials for no-show jobs is a violation of the FCPA. But what about hiring children of government officials into real jobs? Is that also a violation? The U.S. government is investigating JPMorgan Chase & Co.’s practice of hi
> Suppose two people are living together: the suspect and a tenant. If the tenant consents to a police search of the premises, then the police are not required to first obtain a warrant. What if the suspect and the tenant disagree, with the tenant granting
> Craig Newmark founded craigslist, the most popular website in the country for classified ads. Rather than maximizing its profits, craigslist instead focused on developing a community among its users. It was a place to find an apartment, a pet, a job, a c
> Mickle pleaded guilty to rape. The judge sentenced him to prison for five years and also ordered that he undergo a vasectomy. Was this cruel and unusual punishment?
> In his most famous novel, The Red and the Black, the French author Stendhal (1783–1842) wrote: “There is no such thing as ‘natural law’: this expression is nothing but old nonsense. Prior to laws, what is natural is only the strength of the lion, or the
> 1. Senate investigators found that executives at JPMorgan Chase & Co. lied to investors and the public. Also, traders, with the knowledge of top management, changed risk limits to facilitate more trading and then violated even these higher limits. Execut
> Mary wrote a check on her account at First Bank for $23,000 payable to the order of Eagle Construction Company. Sylvia, who was an Eagle employee, deposited Mary’s check in her personal account at Second Bank, without first having someone indorse it. Whe
> Marina Stengart used her company laptop to communicate with her lawyer via her personal, password-protected, web-based e-mail account. The company’s policy stated: E-mail and voice mail messages, internet use and communication and computer files are cons
> Should you have a will? Do you have one?
> Imagine that you sign a lease and that you are to move into your new apartment on August 15. When you arrive, the previous tenant has not moved out. In fact, he has no intention of moving out. Compare the English and American rules. Should the landlord i
> Music stars Beyoncé and Jay-Z named their newborn daughter Blue Ivy and then rushed to trademark the name, because they planned to use it in commerce. Their application was denied because a wedding planner in Massachusetts was already using “Blue Ivy” as
> 1. Milton Friedman was a strong believer in the _____________ model. He _______________ argue that a corporate leader's sole obligation is to make money for the company's owners. A. shareholder; did B. shareholder; did not C. stakeholder; did D. stakehol
> 1. The United States Constitution is among the finest legal accomplishments in the history of the world. Which of the following influenced Franklin, Jefferson, and the rest of the Founding Fathers? A. English common-law principles B. The Iroquois’ syst
> 1. A decedent’s will provided that the estate was to be divided among the decedent’s issue, per capita and not per stirpes. If there are two surviving children and three grandchildren who are children of a predeceased child at the time the will is probat
> Advertisements for Listerine mouthwash claimed that it was as effective as flossing in preventing tooth plaque and gum disease. This statement was true, but only if the flossing was done incorrectly. In fact, many consumers do floss incorrectly. However,
> 1. Which of the following requirements must be met to create a bailment? I. Delivery of personal property to the intended bailee II. Possession by the intended bailee (a) I only (b) II only (c) Both I and II (d) None of the above 2. Consider the follow
> 1. Quick, Onyx, and Nash were deeded a piece of land as tenants in common. The deed provided that Quick owned one-half the property and Onyx and Nash owned one-quarter each. If Nash dies, the property will be owned as follows: (a) Quick 1⁄2, Onyx 1⁄2. (b
> Recall the Quimby case. This type of fraud is increasingly common. What could Quimby have done to protect himself?
> Process cheese food slices must contain at least 51% natural cheese. Imitation cheese slices, by contrast, contain little or no natural cheese and consist primarily of water, vegetable oil, flavoring, and “fortifying agents.” Kraft, Inc. makes Kraft Sing
> 1. Taylor Swift wanted to trademark her song lyrics: “And I’ll write your name.” She_______. A. can trademark it only if she registers it B. can trademark it only if it is in a tangible form C. cannot trademark it because it is not novel D. can trademark
> 1. Suppose that you are the manager of General Motors plant that is about to start producing Hummers. The Hummer requires special protective paint that, as it turns out, reacts with other chemicals during the application process to create a pollutant. Wh
> To conceive a child, some infertile couples need an egg from a fertile woman. In this market, eggs from smart, pretty women are the most valuable. However, the American Society for Reproductive Medicine recommended that clinics cap any payments to donors
> 1. Dell sold computers online with a particular software. In fact, the software was not available for several months. Instead, Dell sent customers a coupon for the software “when available.” What did Dell do wrong? I. Failed to offer buyers the opportuni
> 1. Are horizontal price fixing and vertical price fixing per se violations of the Sherman Act? A. Yes, Yes B. Yes, No C. No, Yes D. No, No 2. If Sterling Steel (SS) refused to buy concrete from Carat Concrete (CC) unless CC bought steel from SS would tha
> Clarice, a young woman with a mental disability, brought a malpractice suit against a doctor at the Medical Center. As a result, the Medical Center refused to treat her on a nonemergency basis. Clarice then went to another local clinic, which was later a
> 1. When a common stock offering requires registration under the Securities Act of 1933: (a) the registration statement is automatically effective when filed with the SEC. (b) the issuer would act unlawfully if it were to sell the common stock without pro
> 1. A voluntary petition filed under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code: A. Is not available to a corporation unless it has previously filed a petition under the reorganization provisions of Chapter 11 of the Code B. au
> 1. A majority of shareholders at Weed, Inc. wanted to reinstate the former CEO of the company and sell off an unprofitable division. Do shareholders have the right to make these two decisions? A. Yes to both. B. No to both. C. The shareholders have the r
> 1. The burden of proof in a civil trial is to prove a case ___. The burden of proof rests with the ___. A. beyond a reasonable doubt; plaintiff B. by a preponderance of the evidence; plaintiff C. beyond a reasonable doubt; defendant D. by a preponderance
> Omnicare was a company that sold medication to nursing homes. When it made these sales, it often received rebates from drug companies. In its registration statement under the 1933 Act, the company stated that the rebates were legal. Ultimately, however,
> 1. Generally, a corporation’s articles of incorporation must include all of the following except the: A. Name of the corporation’s registered agent B. Name of each incorporator C. Number of authorized shares D. Quorum requirements 2. Destiny Manufacturin
> 1. Which of the following is not necessary to create a partnership? A. Execution of a written partnership agreement B. Agreement to share ownership of the partnership C. Intention of conducting a business for profit D. Intention of creating a relationshi
> A bankrupt who owns a house has the option of either paying the mortgage or losing his home. The court cannot reduce the amount owed; its choice is to discharge the entire debt or leave it whole. Congress considered a bill that would permit a bankruptcy
> 1. A sole proprietorship: A. Must file a tax return B. Requires no formal steps for its creation C. Must register with the secretary of state D. May sell stock E. Provides limited liability to the owner 2. Assuming all other requirements are met, a corp
> 1. Gregg Young, the CEO of BJY Inc., insisted on calling Mamdouh El-Hakem “Manny” or “Hank” even when El-Hakem asked him not to. El-Hakem was of Arab heritage. Young argued that a “Western” name would increase El-Hakem’s chances for success and would be
> 1. For which of the following activities can a foreign sovereign be sued? A. Operating a factory dangerously B. Issuing a law that discriminates against a certain group C. Suspending the civil rights of its people D. None of the above 2. Outdoor Technolo
> 1. When Brooke went to work at an advertising agency, his employment contract stated that he was, “at will and could be terminated at any time.” After 28 months with the company, he was fired without explanation. Which of the following statements is true
> 1. At Business University, semester enrollment begins at midnight on April 1. Jasper asked his roommate Alonso as a favor to register him for an important required course. Alonso agreed to do so but then overslept. As a result, Jasper could not enroll in
> Catherine suffered serious physical injuries in an automobile accident and became acutely depressed as a result. One morning, she received a check for $17,400 in settlement of her claims arising out of the accident. She indorsed the check and placed it o
> For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was the CEO. He was not involved in the fraud, however, and was never charged with a crime. Nonetheless, the SEC sought to clawback some of hi
> Corporate executives are not the only people to earn fabulous salaries. Some athletes earn even more than CEOs. What is the difference between athletes and executives (besides a hook shot)?
> Some companies adopt a staggered board of directors as an antitakeover defense. How does a staggered board affect cumulative voting?
> James owned Despatch Industries. When his son, Wade, and son-in-law, Alan, started working for the company, they both signed identical employment contracts, which provided for a severance payment if they left the company. After Wade and James had a falli
> 1. CPA’s duty of due care to a client most likely will be breached when a CPA: A. Gives a client an oral instead of a written report B. Gives a client incorrect advice based on an honest error judgment C. Fails to give tax advice that saves the client mo
> Ronald O. Perelman, chairman of the board and CEO of Pantry Pride, met with his counterpart at Revlon, Michel C. Bergerac, to discuss a friendly acquisition of Revlon by Pantry Pride. Revlon rebuffed Pantry Pride’s overtures, perhaps in part because Berg
> 1. A check has the following indorsements on the back: Paul Frank without recourse George Hopkins payment guaranteed Ann Quarry Collection guaranteed Rachel Ott Which of the following conditions occurring subsequent to the indorsements would discharge al
> 1.Which of the following statements are true? A. A draft is always a check. B. A check is always a draft. C. A note must involve at least three people D. All of the above. 2. Which of the following standards are required for negotiability: A. The
> 1. Under the UCC Article 9, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? A. Filing a security agreement B. Taking possession of the instrument C. Perfecting by attachment D. Obta
> 1. Cara Fabricating Co. and Taso Corp. agreed orally that Taso would custom manufacture a compressor for Cara at a price of $120,000. After Taso completed the work at a cost of $90,000, Cara notified Taso that the compressor was no longer needed. Taso is
> On October 12, James Camp agreed to provide services to Shawn Sheth by October 15. In payment, Sheth gave Camp a check for $1,300 that was postdated October 15. On October 13, Camp sold the check to Buckeye Check Cashing for $1,261.31. On October 14, fea
> 1. On Monday, Wolfe paid Aston Co., a furniture retailer, $500 for a table. On Thursday, Aston notified Wolfe that the table was ready to be picked up. On Saturday, while Aston was still in possession of the table, it was destroyed in a fire. Who bears t
> 1. For a contract governed by the UCC sales article, which one of the following statements is correct? (a) Merchants and non-merchants are treated alike. (b) The contract may involve the sale of any type of personal property. (c) The obligations of the p
> 1. Which of the following statements is true? A. Vagueness occurs when the parties do not want the contract to be clear. B. Ambiguity occurs when the parties do not want the contract to be clear. C. Vagueness in a contract is often appropriate as a way t
> Is there any good reason to be in a partnership? If so, for what sort of business would it make sense?
> Lucan and Alison agreed to practice law together. Their stationery said, “The Lucan and Alison Partnership” and they told everyone they were partners. They signed a partnership agreement providing that Lucan would receive a “guaranteed annual draw of $10
> Carrie and Laura started a business together to sell bridesmaids dresses online. Carrie spent months preparing the financials and meeting with potential investors while Laura designed dresses and found suppliers. Once Carrie was finished with the financi
> Dutch, Bill, and Heidi were equal partners in a lawn care business. Bill and Heidi wanted to borrow money from the bank to buy more trucks and expand the business. Dutch was dead set against the idea. When the matter came to a vote, Bill and Heidi voted
> Mike Love and Brian Wilson were members of the Beach Boys. In the 1960s, they wrote songs together. The copyrights for these songs were later sold to Rondor, which paid the two men royalties when the songs were played. In 2004, Wilson re-recorded some of
> ETHICS Frank Brown, who is African-American, tried to buy lunch at a McDonald’s at the Dadeland Mall in Florida. The manager, Omar Zaveri, not only refused to serve Brown but verbally abused him, used racial slurs and told all the other employees that he
> Corporations developed to encourage investors to contribute the capital needed to create large-scale manufacturing enterprises. But LLCs are often start-ups or other small businesses. Why do their members deserve limited liability? And is it fair that LL
> On June 30, John signed a demand promissory note for $2,000 to the Camelot Country Club. The note stated that it was being given in payment for a membership in the country club, but in fact, the club was insolvent, its memberships had no value, and John
> As you will see in Chapter 33, Facebook began life as a corporation, not an LLC. Why did the founder, Mark Zuckerberg make that decision?
> 1. Master Mfg., Inc. contracted with Accur Computer Repair Corp. to maintain Master’s computer system. Master’s manufacturing process depends on its computer system operating properly at all times. A liquidated damages clause in the contract provided tha
> Leonard, an attorney, was negligent in his representation of Anthony. In settlement of Anthony’s claim against him, Leonard signed a promissory note for $10,400 on behalf of his law firm, an LLC. When the law firm did not pay, Anthony filed suit against
> Peter Oiler was a truck driver who delivered groceries to Winn-Dixie stores. He revealed to his boss that in his free time he liked to dress as a woman, even though he was happily married to a woman. Oiler had been diagnosed with transvestic fetishism wi
> Lisa T. Jackson, who was white, worked at Uncle Bubba’s Seafood and Oyster House. She filed suit under Title VII, alleging that the restaurant discriminated against black employees. They had to enter through the restaurant’s rear entrance and could not u
> A high-end boutique in Phoenix would hire only women to work in sales because fittings and alterations took place in the dressing room or immediately outside. The customers were buying expensive clothes and demanded a male-free dressing area. Has the sto
> Generally, the BFOQ defense does not apply to customer preference. But recently, some clients have been pressuring their law firms to staff their cases with female and minority lawyers. If a firm does so, would the BFOQ defense be valid? Should it be?
> 1. CPA QUESTION: Nagel and Fields entered into a contract in which Nagel was obligated to deliver certain goods by September 10. On September 3, Nagel told Fields that he had no intention of delivering the goods. Prior to September 10, Fields may success
> 1. Yost contracted with Egan for Yost to buy certain real property. If the contract is otherwise silent, Yost’s rights under the contract are: A. Assignable only with Egan’s consent B. Nonassignable because they are personal to Yost C. Nonassignable as a
> The United Kingdom has not signed the CISG. Until recently, major world traders like Japan and Brazil had refused to sign. Imagine that you are a legislator from one of these countries. What might your objections be to ratifying a treaty on sales law?
> Kendall raised hogs. The Grain Company would provide him with hogs and grain and, in return, he would sign a promissory note in an amount equal to the value of these items. Once the pigs were grown, Kendall would sell them and repay the loan. One time, a
> After the 9/11 terrorist attacks, the U.S. government imprisoned suspected terrorists in Guantanamo Bay, Cuba. Officials argued that these detainees did not enjoy constitutional rights because they were not on U.S. soil, even though they were held by Ame
> 1. Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to: A. Explain the meaning of an ambiguity in the written contract B. Establish that fraud had bee
> Nationwide Insurance Co. circulated a memorandum asking all employees to lobby in favor of a bill that had been introduced in the Pennsylvania House of Representatives. By limiting the damages that an injured motorist could never recover from a person wh
> Despite its detailed dress code for employees, Starbucks stores permitted workers to wear multiple pins and buttons, some of which, but not all, were related to its employee-reward and product-promotion programs. When a union tried to organize employees,
> 1. Kerry finds a big green ring in the street. She shows it to Leroy, who says, “Wow. That could be valuable.” Neither Kerry nor Leroy knows what the ring is made of or whether it is valuable. Kerry sells the ring to Leroy for $100, saying, “Don’t come g
> Walmart employees were not unionized. A group of outside organizers called “Our Walmart” created an app that Walmart employees could use to communicate with one another and obtain legal and other workplace advice. Walmart told its managers to warn worker
> 1. At a fraternity party, George mentions that he is going to learn to hang glide during spring break. Vicki, a casual friend, overhears him, and the next day she purchases a $100,000 life insurance policy on George’s life. George has a happy week of han
> A year ago, Hot Air Systems installed a new heating system in Dolly’s house. A month ago, Chuck called Dolly and told her he worked for hot Air and it was time to perform the yearly inspection. After his inspection, Chuck said it was lucky he had called
