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Business Law
Q:
Charging different prices to different buyers for identical goods is price discrimination.
Q:
The Clayton Act prohibits certain classes of price discrimination.
Q:
A single seller acting unilaterally is free to deal, or not to deal, with anyone it chooses.
Q:
The offense of monopolization does not require the intent to monopolize.
Q:
The Internet is changing the notion of the size and limits of a relevant geographic market.
Q:
The possession of monopoly power alone does not constitute the offense of monopolization.
Q:
For products that are sold nationwide, the relevant geographic market encompasses the entire United States.
Q:
Size alone does not determine whether a firm is a monopoly.
Q:
Monopoly power is a minor amount of market power.
Q:
The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.
Q:
Monopoly power may be proved by evidence that a firm used its power to control prices.
Q:
Predatory pricing involves selling a product at prices substantially above the fair market value.
Q:
Section 1 of the Sherman Act condemns monopolization.
Q:
A trade association practice or agreement that restrains trade is analyzed under the rule of reason.
Q:
Resale price maintenance agreements are subject to analysis under the rule of reason.
Q:
Territorial and consumer restrictions are per se violations.
Q:
A market division by class of customer between rival firms violates antitrust law.
Q:
A group boycott is not a per se violation.
Q:
A price-fixing agreement that is reasonable does not violate antitrust law.
Q:
A price-fixing agreement is an agreement by two or more sellers to boycott a particular person or firm.
Q:
Grapple Market Share Corporation would like to know what information federal agencies have about Grapple's operations, so that the firm will know what its competitors may be able to learn about it. Can Grapple require the agencies to disclose whatever information they may have concerning it? If so, how should the firm make its request? What federal law applies? Is any information exempt?
Q:
Administrative agencieslike the Securities and Exchange Commission, the Federal Trade Commission, and the Food and Drug Administrationmake rules. What are the two basic types of rules called, and how binding are they? What must an administrative rule NOT do?
Q:
The Regulatory Flexibility Act has helped reduce record-keeping burdens for Hometown Gas Company and other small business firms in the area of
a. accounting practices.
b. asset acquisition.
c. hazardous waste management.
d. tax reporting.
Q:
With some exceptions, every portion of every meeting of the Federal Reserve System Board of Governors and other federal administrative agencies must be open to public observation under
a. no federal or state law.
b. the Freedom of Information Act.
c. the Government in the Sunshine Act.
d. the Public Accountability Act.
Q:
A failure of the Federal Bureau of Investigation to comply with a request under the Freedom of Information Act (FOIA) may be challenged in
a. a federal district court.
b. a hearing before the U.S. Freedom of Information Agency.
c. a meeting with Congress's FOIA subcommittee.
d. a special conference with the president of the United States.
Q:
Beck seeks information about Donatello and other well-known businesspersons under the Freedom of Information Act. To obtain the information, Beck must
a. agree not to reveal any trade secrets.
b. reasonably describe the information.
c. get a court order.
d. have the businesspersons' permission.
Q:
After notice-and-comment rulemaking, the U.S. Bureau of Land Management (BLM) issues a new rule and applies it to Clearcut Timber Company. Clearcut appeals the application to a federal court. The court will most likely defer to the BLM's interpretation of
a. the facts and the law.
b. the agency's authority.
c. procedural requirements.
d. the Constitution.
Q:
In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. never defer to an agency's interpretation of law.
Q:
Guard Personnel Company is charged with using hiring practices that do not meet requirements set by the Transportation Safety Administration (TSA). The administrative law judge orders Guard to comply with the TSA's regulations. Guard may
a. appeal to the commission that governs the TSA.
b. appeal to Congress, which created the TSA.
c. appeal to a different, separate agency.
d. ignore the order.
Q:
Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that
a. attorneys are not allowed to attend administrative hearings.
b. clients are not allowed to communicate with their attorneys during administrative hearings.
c. hearsay can be introduced as evidence in an administrative hearing.
d. the burden of proof is on the charged party to prove innocence.
Q:
Nursing Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Nursing Home Care will be required to appear at a hearing presided over by
a. a federal appellate court judge.
b. a federal district court judge.
c. an administrative law judge.
d. a U.S Marshal.
Q:
The Federal Emergency Management Agency (FEMA) discovers that Goodnuff Trailers, Inc., is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be
a. a negotiated settlement.
b. a trial and a fine.
c. a trial and an appeal to a higher authority.
d. a trial and the dissolution of the business.
Q:
The U.S. Mine Safety Administration conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
a. all industries.
b. highly regulated industries.
c. no industries.
d. newly regulated industries only.
Q:
The functions of the Social Security Administration, like those of other administrative agencies, include
a. adjudication.
b. declaration.
c. enunciation.
d. pronunciation.
Q:
The Nuclear Regulatory Commission (NRC) files a complaint against General Construction Corporation (GCC). GCC may want to settle the dispute, before formal adjudicatory proceedings begin, to avoid
a. appearing uncooperative.
b. eliminating the need for additional proceedings.
c. rectifying the problem to the NRC's satisfaction.
d. saving the expense of formal proceedings and later appeals.
Q:
Caleb is a witness in a controversy involving the U.S. Drug Enforcement Administration. Caleb can be compelled to appear before an administrative law judge if he is served with
a. an order for specific performance.
b. a rule for parol evidence.
c. a subpoena.
d. a politely worded request.
Q:
The Internal Revenue Service (IRS) wants to seize certain documents of Monetary Propriety, Inc. Whether it is permissible for the IRS to request or seize the documents depends on whether the documents are
a. incriminating.
b. relevant.
c. technical.
d. valuable.
Q:
The U.S. Patent and Trademark Office (USPTO) wants to review certain records of Verity Corporation. The USPTO can legitimately gain access to the records through
a. agency coercion.
b. infiltrating Verity's computers without the firm's knowledge.
c. public comment.
d. Verity's consent.
Q:
The Food and Drug Administration (FDA) is investigating reports that Caplets Pharmaceutical Corporation is putting potentially harmful additives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets
a. must be specific and adequately describe the material being sought.
b. must be non-specific so an incriminating item is not overlooked.
c. must be general so as to force an uncooperative party's compliance.
d. may, but need not, be specific because the FDA is a federal agency.
Q:
The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue
a. an order for specific performance.
b. a rule for parol evidence.
c. a formal complaint.
d. a subpoena.
Q:
The U.S. Citizenship and Immigration Service issues a rule. Like the rules of other federal administrative agencies, this rule is compiled in
a. the Administrative Register of the Federal Government.
b. the Code of Federal Regulations.
c. the Federal Rules of Civil Procedure.
d. the United States Code.
Q:
The U.S. Fish and Wildlife Service utilizes notice-and-comment rulemaking. This involves a period during which
a. judges, legislators, and the president are asked about a proposed rule.
b. potential violators of a proposed rule are notified and publicized.
c. the administrators "notice" a problem and "comment" on it.
d. the public is asked to comment on a proposed rule.
Q:
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is
a. compile the rule with others in the Code of Federal Regulations.
b. conduct an on-site inspection.
c. publish a notice of the proposed rulemaking.
d. solicit public comment.
Q:
To notify the public of a proposed rule, the Food Safety and Inspection Service, like other federal agencies, publishes the proposal in
a. the news media.
b. a trade journal available to members of the industry.
c. the Federal Register.
d. an office memo that employees are free to take home.
Q:
Before adopting new regulations to govern Internet-based phone services, the Federal Communications Commission may not
a. hold hearings to acquire facts pertinent to the proposed rules.
b. ignore the Administrative Procedure Act to streamline proceedings.
c. order manufacturers to provide certain documents.
d. solicit testimony from interest groups and consumers.
Q:
Freight Transport Company is subject to a decision by the National Labor Relations Board. Freight Transport appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
a. followed a consideration of legally appropriate factors.
b. justifiably changed the agency's prior policy.
c. was accompanied by a rational explanation.
d. was plainly contrary to the evidence.
Q:
Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
a. changed the agency's prior policy without justification.
b. followed a consideration of all relevant factors.
c. was accompanied by a rational explanation.
d. was plainly warranted by the evidence.
Q:
Executive control over the Federal Communications Commission, and other agencies, may be exercised through a presidential veto of
a. Congress's modifications of the agency's authority.
b. the agency's final rules.
c. the agency's final orders.
d. none of the choices.
Q:
The Merit Systems Protection Board issues a rule. Like other administrative agencies' "legislative rules," this rule is as
a. binding as a law passed by Congress.
b. persuasive as an expert's opinion.
c. suggestive as a newspaper's editorial.
d. unenforceable as a salesperson's puffery.
Q:
The Federal Aviation Administration uses notice-and-comment rulemaking. The final rule in such a proceeding is sometimes referred to as
a. a legislative rule.
b. an interpretive rule.
c. an adjudicatory order.
d. an executive edict.
Q:
Plastix Produx Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Plastix Produx wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
a. an actual controversy at issue.
b. standing to sue.
c. the exhaustion doctrine.
d. the ripeness doctrine.
Q:
Persons who favor the creation of a National Biotech Agency to regulate the production of genetically altered agricultural products should concentrate their lobbying efforts on
a. Congress.
b. federal administrative agencies that oversee agricultural products.
c. the United States Supreme Court.
d. the president of the United States.
Q:
Nemo's Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
a. Congress, through enabling legislation.
b. the courts, through the adjudicatory process.
c. the U.S. Constitution, through the tax and spend clause.
d. the U.S. Department of the Treasury, through a legislative rule.
Q:
Playground Equipment, Inc., is subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other federal administrative agencies, the OSHA was created by
a. Congress, through enabling legislation.
b. the Federal Trade Commission, through the rulemaking process.
c. the president, through an executive order.
d. the U.S. Department of Labor, through a final order.
Q:
Congress leaves it to the Bureau of Prisons to oversee the promulgation of detailed regulations in areas under the agency's jurisdiction. This is
a. divine right.
b. the delegation of legislative powers.
c. gap-filling power.
d. unconstitutional conduct.
Q:
The U.S. Social Security Administration is a federal agency. The Iowa Department of Social Services is a parallel state agency. If these agencies' regulations conflict
a. the federal agency's regulations take precedence.
b. the state agency's regulations take precedence.
c. the two agencies' regulations take equal precedence.
d. the two agencies' regulations cancel each other.
Q:
Independent regulatory agencies such as the Federal Trade Commission are
a. not part of the government's executive branch.
b. outside the major departments of the government's executive branch.
c. subagencies of executive agencies.
d. subject to more executive authority than executive agencies.
Q:
An agency must conduct a regulatory flexibility analysis whenever a new regulation will have an impact on a "small number of substantial entities."
Q:
Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses.
Q:
The public must be provided with adequate advance notice of scheduled federal administrative agency meetings and agendas.
Q:
Every portion of every meeting of a federal administrative agency does not have to be open to public observation.
Q:
The federal government must disclose certain records to any person or entity on written request only if there is a rational reason for the request.
Q:
All federal government agencies must make their records available electronically on the Internet.
Q:
If the meaning of a statute's language is unclear and an agency interprets it, a court must follow the interpretation as long as it is reasonable.
Q:
If the meaning of a statute's language is unclear and an agency interprets it, a court must overturn the interpretation.
Q:
An administrative adjudicatory hearing does not have to meet the constitutional standards of due process.
Q:
Administrative agencies generally exercise substantial discretion over the type of hearing procedures that they use.
Q:
Frequently, disputes over violations of administrative rules are resolved through informal adjudication proceedings.
Q:
In most instances, an agency is not required to obtain a search warrant before a physical search for evidence is conducted.
Q:
Administrative agencies can conduct warrantless searches in some situations.
Q:
If a business firm refuses to comply with an agency's request to inspect facilities or business records, the agency must defer to the refusal.
Q:
Often, an administrative agency itself enforces its rules.
Q:
Final administrative rules have binding legal effect unless the courts later overturn them.
Q:
Final administrative rules do not have binding legal effect unless the courts later declare them to be binding.
Q:
Only experts can submit comments on a proposed administrative rule.
Q:
The period for persons to comment on a proposed administrative rule must be at least thirty days.
Q:
Unlike those who violate statutes, violators of agency rules are not punished.
Q:
Rulemakingthe formulation of new administrative regulationsis a major function of Congress, not administrative agencies.
Q:
The Administrative Procedure Act does not apply to a particular agency procedure.
Q:
A party can challenge an administrative regulation as so irrational as to be arbitrary and capricious.