Multiple-Choice Questions
1. Under Regulation D, an issuer:
(a) May not sells to a thousand accredited investors.
(b) May not sells to 27 unaccredited investors.
(c) Must make disclosure to accredited investors.
(d) Must make disclosure to unaccredited investors.
(e) May advertise the stock publicly.
2. Which of the following statements is not true about a public offering?
(a) The issuer files a registration statement with the SEC.
(b) The issuer files a prospectus with the SEC.
(c) Company officers may make public statements about the offering before the stock is sold.
(d) Company officers may make public statements about the offering after the stock is sold.
(e) The issuer may solicit offers for the stock before the effective date.
3. To have an illegal monopoly, a company must:
I. Control the market.
II. Maintain its control improperly.
III. Have a market share greater than 50 percent.
(a) I, II and III.
(b) I and II.
(c) II and III.
(d) I and III.
(e) Neither I, II nor III.
4. 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
5. Reserve Supply Corp., a cooperative of 379 lumber dealers, charged that Owens-Corning Fiberglass Corp. violated the Robinson-Patman Act by selling at lower prices to Reserve's competitors. It presented proof that these prices had harmed competition. Owens-Corning admitted that it had granted lower prices to a number of Reserve's competitors to meet, but not beat, the prices of other insulation manufacturers. Is Owens-Corning in violation of the RPA?
(a) Yes, because the RPA requires that manufacturers charge all competitors the same price.
(b) Yes, because any difference in price is a per se violation of the RPA.
(c) Yes, because these price variations harmed competition.
(d) No, because a manufacturer is not liable under the RPA if it charges lower prices to meet competition.