MULTIPLE CHOICE PRACTICE QUESTION for BUSINESS LAW CLASS Please provide some notes that can be helpful to understand this questions. 1)Any legislation concerning federal taxes must originate. a)More than one of the other answers. b)In the U.S. House of Representatives. c)In the U.S. Senate. d)With an executive order from the president. 2)The constitutional basis for antitrust legislation is found in a)The Fifth Amendment. b)The Fourteenth Amendment. c)The Interstate Commerce clause. 3)The decisions of administrative agencies may be appealed into court under a principle known as a)Legislative b)Judicial review c)Procedural due process 4)Administrative agencies, at both the federal and state a)Common law court decisions b)Executive orders c)Enabling statutes 5)A contact obligation discharged in a bankruptcy proceeding makes the contract. a)Void b)Voidable c)Unenforceable 6)Which of the following statements is true? a)A chapter 13 petition may be voluntary or involuntary b)Only corporations, limited liability companies, partnerships and limited partnerships can file a chapter 11petition. c)None of the other statements are true. d)A chapter 11 case cannot be Arolled over@ into chapter 7. 7)A land title which is considered marketable is a)Both of the other answers. b)A non-defective title c)What a purchaser of the land is entitled to receive at closing. 8)A land title which is considered "marketable" is a)Both of the other answers. b)A non-defective title c)What a purchaser of the land is entitled to receive at closing 9)Securities regulatory statutes provide for a)Both civil causes of action and criminal prosecutions b)Only criminal prosecutions c)Only civil causes of action 10)Bankruptcy law is exclusively state law. a)True b)False 11)The Securities Exchange Act of 1934 is primarily concerned with the trading of securities. a)Before they have been offered to the public. b)After they have been issued and are being publicly traded. 12)The Securities Act of 1933 is primarily concerned with disclosure of essential information about a security offering a)Before it is offered to the public. b)After it is offered to the public. 13)The action of the U.S Supreme Court in declaring an act of Congress unconstitutional is an expression of the doctrine of a)Judicial review b)Original jurisdiction 14)Securities regulation is found only at the federal level. a)True b)False 15)The Due Process Clause in the U.S. Constitutions is found in a)The Fourteenth Amendment b)Both of the other answers c)The fifth Amendment 16)Which of the following statement is true? a)A beach of contract is a tort. b)A breach of contract is a type of negligence. c)Neither of the other answers is correct. 17)A lawsuit alleging insider trading of securities will be filed under. a)The securities exchange Act of 1934. b)Federal bankruptcy law. c)The securities Act of 1933. 18)Requiring a defendant in a lawsuit to be served with a citation is an example of a)Both of the other answers. b)Compliance with the 'Privileges and Immunities' of the U.S Constitution c)Procedural for process 19)The Securities Exchange Commission makes final and binding rulings on any accusations of securities violations. a)False b)True 20)All federal taxing legislation has to originate in a)The Senate b)An executive order c)The House of Representatives. 21)Securities regulatory statutes are primarily concerned with. a)Breaches of contract. b)Neither of the other answers. c)Tort actions. 22)A court case involving bankruptcy will be governed exclusively by a)Federal law b)State law 23)Wasley Wetears, age 16, purchases a boat and trailor. He takes possession of both. Subsequently, Wesley decides he wants out of the contact. a)Wesley can disaffirm the contact but must return both the boat and the trailor. b)Wesley can disaffirm the contact upon returning the boat, but may keep the trailor c)Wesley can Disaffirm the contract upon returning the trailor but may keep the boat. 24)If, a debtor in bankruptcy concealed assets during the bankruptcy proceeding. a)Such conduct is irrelevant to the discharge, which is permanent and cannot be revoked. b)The debtor can be disqualified from receiving a discharge. 25)If a seller breaches a contract for the sale of land, the non-beaching buyer a)May sue for and recover the equitable remedy of specific performance, since the remedy at law would be inadequate. b)Only has a cause of action for money damages he or she may prove. 26)Whether a defendant in a criminal trial is guilty is a)A question of law b)A question of fact 27)Generally speaking, the Bankruptcy Abuse Consumer Protection Act of 2005 makes the federal bankruptcy law less Adebtor friendly@ than it used to be a)False b)True 28)A count case involving a false statement or omission of a material fact in the registration statement will be brought under a)The Securities Exchange Act of 1934 b)The Securities Act of 1933 29)The securities and Exchange Commission a)Is a consulting agency for investment advice. b)Is a federal regulatory agency charged by Congress with administration of both the Securities Act of 1933 and the securities Exchange Act of 1934. c)is a branch of the U.S Department of justice. 30)Strict liability of an issuer of securities will result from a)An antitrust violation. b)None of the other answers. c)A false statement or omission of a material fact in a registration statement. d)All anti-fraud violations under the Securities Exchange Act of 1934. 31)Ignoring the entity nature of the corporation and exposing shareholders to individual liability is a)Known as "piercing the corporate veil". b)Is not possible under any circumstances. c)To invade the privacy of the shareholders and is thus illegal. 32)An agent is always an independent contractor. a)False b)True 33)A plan for reorganization is involved in a)An antitrust case under the Sherman Antitrust Act b)A chapter 11 procedure under bankruptcy law. c)A chapter 7 procedure under federal bankruptcy law. d)A chapter 13 procedure under federal bankruptcy law. 34)General unsecured creditors have priority claims in a bankruptcy case. a)False b)True. 35)Trading of material non-public information by an insider is a)Legal as long as it is not a criminal violation b)A common law tort c)An act of fraud under the anti-fraud provision of the Securities Exchange Act of 1934. 36)Insider trading is a)A crime under the equal protection clause of the Fourteenth Amendment. b)A violation of the Securities Exchange Act of 1934 37)Under the Securities Act of 1933 there may be a)Civil actions brought by the SEC b)Criminal prosecutions. c)Both of the other answers 38)Which of the following is an act of fraud under federal securities regulatory law? a)Putting out false information in order to manipulate the market. b)Insider trading. c)Both of the other answers. 39)The securities Act of 1934. a)Is designed to provide a true disclosure of information prior to offering a security for sale to the public b)Provides for a Registration Statement to be filed with the SEC c)Deals with regulation after securities have been offered and sold to the investing public. 40)Punitive damages are recoverable for a)The tort of negligence b)The tort of fraud. c)Both of the other answers. 41)The Constitutional power of Congress to regulate interstate commerce is found in a)The Due Process Clause of the Fourteenth Amendment. b)The Bill of Rights c)Article one, Section Eight. 42)The registration statement a)Both of the other answers. b)Is the main thrust of the anti-fraud provision of the securities Exchange Act of 1934. c)Is the main thrust of the Securities Act of 1933. 43)Governmental regulatory agencies may be found at municipal, county, state, and federal levels of government. a)True b)False 44)A promise without consideration results in a a)An illegal bargain b)Contract that is unenforceable c)A voidable contract d)Void contract 45)An S Corporation will be subject to double taxation in case there are corporate profits and dividends are paid to shareholders. a)False b)True 46)The tort theory of strict liability a)Requires proof that a defendant was negligent b)Is liability without proof of fault on the part of a defendant c)Requires proof that a defendant was reckless. 47)The power of Congress to regulate interstate commerce is found in a)The fourth Amendment b)Article 3 of the Constitution c)Article 1, Section 8 of the Constitution. d)Article 2 of the Constitution 48)A hearing in a federal administrative agency before an administrative law judge a)Is subject to judicial review in federal court. 49)Administrative agencies generally are given their own rule-making authorities a)True b)False 50)Admissibility of evidence in the trial of a lawsuit is a)A question of law b)A question of fact