Q:1 Free Flow Products, the largest wholesaler in the area with near monopoly power, refuses to sell its products to Papa Gene, Inc., a small retailer. Under antitrust law, this is

a per se violation.

not a violation.

subject to the rule of reason.

a deceptive practice.

Q2: "Short-swing" profits from the sale or purchase of securities by corporate officers are automatically illegal without having to prove the officer's "intent."

True

False

Q3: The VP of marketing of a corporation appropriates the image of a celebrity in a company advertisement (i.e., uses the celebrity's image without the celebrity's permission).The corporation itself

is liable under respondeat superior

is liable for crimes but not for torts

is not liable

is liable under the business judgment rule

Q4: Juanita is an employee of Business Consultants, where she provides management consulting services to clients.On her time off, she writes a management book that turns out to be a best seller.When her employer claims copyright ownership of her book, Juanita should claim that the book is a "work for hire."

True

False

Q5: To find someone guilty of insider trading, "scienter" must be shown.

False

True

Q6: Under antitrust law, the reasonableness of an exclusive-dealing contract is never a justifiable defense.

False

True

Q7: It is a violation of insider trading law to disclose material, nonpublic information about a company to a person who would not otherwise have access to it even if no securities are traded.

False

True

Q8: Which of the following would NOT be evidence considered by the court to determine whether a person is an employee or an independent contractor?

the person was paid when the job was completed

the employer did not pay employee taxes for the person

the employer exercised little control over the person's work

the person was employed for a short time

Q9: Three doctors wish to combine their practices into a single business.Based on liability considerations, they would probably be advised to form a

limited liability partnership (LLP)

limited partnership (LP)

limited liability company (LLC)

general partnership