1-The board of directors of XYZ Inc. approves a $50 million expenditure for the company to sponsor a PBS program on "Earth: The Next Century." A is the show's producer; he is also married to B, the CEO of XYZ. Identify the strongest theory for a shareholder of XYZ to challenge the expenditure.

Group of answer choices

the directors violated a duty of care, because spending $50 million to sponsor a show unrelated to the business of XYZ is grossly negligent

the directors violated a duty of loyalty because A and B are married, raising into question the fairness of the expenditure

the directors acted in violation of their duty of obedience, since XY's articles and bylaws did not authorize support of non-profit organizations

the $50 million expenditure constituted corporate waste, because the directors made no attempt to identify the show's value to the business of XYZ

2-Coke and Pepsi executives make an arrangement. Coke would be allowed to sell its soda in the North. Pepsi would be allowed to sell its soda in the South. However, Coke could not sell its soda in the South, and Pepsi could not sell its soda in the North. What would this arrangement be?

Group of answer choices

refusal to deal

resale price maintenance agreement

vertical price constraint

horizonal market division

3-Predatory pricing occurs when

Group of answer choices

a firm prices products below cost to drive out competitors.

a firm raises its prices over that of its competitors.

a firm's market share decreases.

competitors agree to charge the same price for similar goods.

4-If the executives at Iams, Purina, and two other major dry dog food manufacturers agree not to purchase any corn from the Iowa Corn Growers' Cooperative, what kind of anticompetitive action would this be?

Group of answer choices

tying arrangement

price discrimination

group boycott

horizontal market division

5-Who among the list is not a major individual within a corporation?

Group of answer choices

director

officer

arbitrator

shareholder

6-Which of the following groups or organizations is not exempt from the federal antitrust laws?

Group of answer choices

labor unions

professional football

insurance companies

professional baseball

7-What document dictates the minimum number of shareholders who must be present to take a vote?

Group of answer choices

bylaws

articles of organization

quorum

stock certificate

8-If Iams and Purina executives get together and decide to charge a certain set price for their lamb and rice dog food, doing so would be an example of

Group of answer choices

Clayton Act violation

vertical agreement concerted action/restraint of trade

horizontal agreement concerted action/restraint of trade

antitrust exemption violation

9-Federal antitrust laws are enforced by the

Group of answer choices

Office of the Mint.

Office of Budget and Management.

Treasury Department.

Department of Justice.

10- If a corporation is harmed by someone, the directors of the corporation have the authority to bring an action on behalf of the corporation against the offending party to recover damages or other relief. If the corporation fails to bring the lawsuit, shareholders have the right to bring the lawsuit on behalf of the corporation. This is called a(n) ________ suit.

Group of answer choices

criminal

ultra vires

derivative

agency