True/False

1. Vague generalities and obvious exaggerations known as puery are not considered deceptive advertising practices.

2. The FTC may order counteradvertising which requires a company to stop challenged advertising.

3. All restaurant chains must post the caloric content of menu items per the Aordable Care Act.

4. Per the Truth in Lending Act, a credit card company may retroactively increase interest rates.

5. The Sherman Antitrust Act was authored by the brother of Civil War General William Tecumseh Sherman.

6. Size alone determines whether a firm is a monopoly.

7. The Clayton Act defines price discrimination as the charging of dierent prices to competing buyers.

8. A crucial consideration in most merger cases is market concentration.

9. The Howey Test is used to interpret the Sherman Act.

10. Insider trading occurs when a person buys or sells securities based on information not available to the public.

11. The tipper/tippee theory prohibits outsiders from taking advantage of certain non-public information.

12. The relationship between a corporation and its shareholders is called incorporated dialogue

Multiple Choice

13. According to POM Wonderful vs. FTC, the FTC argued that health benefit related advertising claims must be based upon:

A. Half-Truths

B. Bait and Switch

C. Randomized control trials

D. None of the above

14. The court, in Haywood vs. Massage Envy, held that to be successful in a ICFA claim, one must prove deception, intent to rely, course of conduct, and _________.

A. Projected damages

B. Actual damges

C. Speculative damages

D. Consequential damages

15. In Santangelo vs. Comcast, the court determined that a _______________ is sucient to constitute an injury.

A. Depleted credit score

B. Hurt feelings

C. Lack of explanation

D. Failure to refund premiums

16. A ________ as required by the Fair Debt Collection Practices Act gives a debtor 30 days to dispute the debt.

A. Communication notice

B. Contact notice

C. Enforcement notice

D. Validation notice

17. A _________ is an agreement by two or more sellers to refuse to deal with a particular person or firm.

A. Group boycott

B. Price fixing agreement

C. Trade Association

D. Predatory pricing

18. According to McWane vs. FTC, __________ is an indication of monopoly power>

A. Legitimate purpose

B. International trade

C. Substantial barriers to market entry

D. Specialized product

19. In Candelore vs. Tinders, the court determined that the pricing scheme violated restrictions against _____________ discrimination.

A. Gender

B. Age

C. Race

D. Intellectual

20. TransWeb vs. 3M stands for the premise that abuse of ___________ make merit the award of attorneys fees in antitrust claim.

A. Legal process

B. Treble damages

C. Private action

D. Divestiture

21. Determining potential interest of investors without actually selling any securities is known as what?

A. Registration statement

B. Prospectus

C. Well-known seasoned issue

D. Testing the waters

22. According to Omnicare vs. Laborers District Council, "misleading" is determined by a

______ standard.

A. Objective

B. Subjective

C. National

D. Individual

23. In SEC vs Texas Gulf Sulphur, ________ is a violation of Section 10b-5 of the Securities Exchange Act of 1934.

A. Disclosure

B. Accredited investment

C. Insider trading

D. Small oerings

24. The court, in Singer vs. Reali, held that a plainti must demonstrate deception, manipulation, or fraud to meet the element of ____________.

A. Causation

B. Scienter

C. Damages

D. Cause in fact

25. State securities laws are called:

A. Blue sky laws

B. Civil sanction laws

C. Ponzi scheme laws

D. Corporate governance laws