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ETH 321T Week 5 Apply Assignment
Review the Week 5 Practice Assignment to help prepare for this assignment.
Complete the Week 5 Apply Assignment in MyEducator.
ETH 321 Week 5 Apply Assignment
- Identify the trade-restraining practice that this example demonstrates.
Two retailers decide that they will both sell no more than 100 premium TVs per month in order to maintain the quality image of the TVs.
o Illegal boycott
o Controlling output
o No illegal practice
o Price fixing
o Division of markets
- Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company. This would be a __________ merger.
o Conglomerate
o Vertical
o Market extension
o Horizontal
- Identify the trade-restraining practice that this example demonstrates.
Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.
o Division of markets
o Price fixing
o Illegal boycott
o Controlling output
o No illegal practice
- Identify the trade-restraining practice that this example demonstrates.
Company A and Company B discuss average industry prices.
o Division of markets
o Price fixing
o No illegal practice
o Illegal boycott
o Controlling output
- A government agency which administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes. Which of the following is true?
o The agency must hold a public comment period for the public to weigh in on the impact and details of the statute.
o The agency must have a public hearing where it explains the statutory language it uses.
o The agency does not need to invite public opinion on the information it will post.
- Gilcorp wants to increase its profitability. It tries to gain new customers by offering a cash bonus to customers who switch to its service from another company. Which of the following is true of this action?
o This may be illegal under the rule of reason.
o This is illegal per se.
o This is legal as long as no agreements are made with a competitor.
o This is legal.
- For the scenario below, determine the legality of the company’s actions.
Ioncorp sells cabinets nationwide to the furniture company Blinkorp. It makes an agreement that Blinkorp will only sell Ioncorp cabinets in its warehouses.
o Strictly illegal
o Impossible to determine legality
o Most likely legal
o Illegal, depending on impact
- Identify the trade-restraining practice that this example demonstrates.
The CEOs of two pharmaceutical companies are having lunch. They discuss the unfair costs of ordering from a manufacturer that supplies to both companies. The CEOs decide that they will no longer work with the unfair pricing of the manufacturer.
o Division of markets
o Illegal boycott
o No illegal practice
o Controlling output
o Price fixing
- For the scenario below, determine the legality of the company’s actions.
Wreckorp wants to maintain an exclusivity image for its product line of sports equipment. It limits its distribution to 100 stores in each region.
o Most likely legal
o Impossible to determine legality
o Illegal, depending on impact
o Strictly illegal
- Blinkorp is selling toys to retailers across the nation. Depending on the season, the company may make its toys with either higher-cost domestic plastics or lower-cost foreign plastics. The retailers who purchase from Blinkorp complain about the different prices caused by the differently-priced materials. Which of the following is true?
o Blinkorp is justified in charging different prices because it needs to meet the price of competition nationwide.
o Blinkorp is justified in charging different prices because the toy industry is so flexible and fluid.
o Blinkorp is engaging in price discrimination against the retailers and must equalize its prices.
o Blinkorp is justified in charging different prices because of the differing production costs.
- Funtech is a toy manufacturer. It wants to form a merger with one of the toy stores that buys its toys. This would be a __________ merger.
o Conglomerate
o Vertical
o Market extension
o Horizontal
- Identify the trade-restraining practice that this example demonstrates.
Tubifor, Inc. purchases all available imported lumber so it can resell it at a quantity and rate that it prefers.
o Price fixing
o No illegal practice
o Illegal boycott
o Controlling output
o Division of markets
- Government agencies generally have power to do all but which of the following?
o Create a new agency in order to address important goals under the mandate of the law which created the agency.
o Make definitions concerning acceptable and unacceptable parameters within the scope of the agency’s purpose.
o Enforce punishments for violators of public policy.
o Enforce substantive laws after following a predesignated procedural law process.
- Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the market so that all customers north of a state line must come to one company for services, and all customers south of the state line must go to the other. The companies will then be free the deal with their customers as they wish. Which of the following is true of this situation?
o This is legal as long as no agreements are made with a competitor.
o This is legal.
o This is illegal per se.
o This may be illegal under the rule of reason.
- For the scenario below, determine the legality of the company’s actions.
Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an agreement wherein Bigcorp may not charge more than $300 for a speaker system.
o Illegal, depending on impact
o Impossible to determine legality
o Strictly illegal
o Most likely legal
- Yittercorp regularly trades in securities on a national exchange. The company is a widely-held corporation with 600 shareholders and $15 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?
o Requirement to file depends on the company’s assets and shareholder base.
o Required to report major business developments and must file annual and quarterly financial reports.
o Not required to report information to the SEC.
o Must file annual and quarterly financial reports
- Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. What constraints on investments for new businesses apply here?
o Investors’ allowable investment depends on the accredited or non-accredited status.
o Investors may invest a combined $50 million within a 12-month period.
o Investors may invest no more than $1 million combined for the first year of the business.
- Horace is trying to start a business. He knows several accredited investors who he knows will help him jumpstart his business. What constraints on investments for new businesses apply here?
o Investors may invest a combined $50 million within a 12-month period.
o Investors’ allowable investment depends on the accredited or non-accredited status.
o Investors may invest no more than $1 million combined for the first year of the business.
- Jewelcorp just began trading securities. The company is a closely-held corporation with several dozen shareholders and $10 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?
o Not required to report information to the SEC.
o Requirement to file depends on the company’s assets and shareholder base.
o Must file annual and quarterly financial reports
o Required to report major business developments and must file annual and quarterly financial reports.
- Chloe has her own office where she generates investment advice for companies. She is compensated for her advice. Which of the following is false?
o Chloe does not have to be a registered adviser if all of her clients are in the same state as her office.
o Chloe does not have to be a registered adviser if she doesn’t have authority to make investment choices for her clients.
o Chloe does have to be a registered adviser even if she only publishes informational analyses and reports concerning specific investments.
o Chloe does have to be a registered adviser even if she only advises for one company.
- Fancorp regularly trades in securities on a national exchange. Which of the following is true concerning the company’s requirement to report to the SEC?
o Must file annual and quarterly financial reports
o Requirement to file depends on the company’s assets and shareholder base.
o Required to report major business developments and must file annual and quarterly financial reports.
o Not required to report information to the SEC.
- Gillcore is about to go public and begin selling securities. As a new public company, what steps must Gillcore take in order to stay in line with the requirements of the Securities Act?
o This company must file a registration statement and prospectus with the SEC.
o The company’s obligations depend on what type of company it is and what type of securities it is offering.
o As a new public company it does not need to take any special action.
- Kathleen works for an accounting firm, Securate, as an auditor. Kathleen’s firm provides many services including auditing services, investment consulting, and tax assistance. Kathleen is working on an audit for a company that Securate also does consulting for. Which of the following is true?
o Kathleen may not assist in consulting for the company.
o Kathleen may not assist in consulting services for the company unless she is an officer in the company.
o Kathleen may assist in consulting services for the company without restriction.
o Kathleen may assist in consulting services for the company as long as she makes notice of a conflict of interest.
- Bekah is an adviser for the company Vicoltech, which deals heavily in investments. Bekah also advises several other clients in her state, but no clients outside of her state. Before the Dodd-Frank Act was passed, Bekah was exempt from registration and reporting requirements with the SEC. When the Dodd-Frank Act was passed:
o Bekah was required to begin reporting information to the SEC.
o Bekah was still exempt from the SEC’s reporting requirements.
o Indeterminable with current information
o Bekah was required to register with the SEC, but not required to report information to the SEC.
- The citizens of France, Belgium, and Finland are upset by a recent trade law enacted in the European Union which they feel negatively impacts their respective economies. In order to resolve their concerns, they would turn to:
o The European Commission
o The European Council
o The European Parliament
- Determine the legality of the transaction.
Tichatech is trying to pierce the global marketplace. When the CEO meets with a foreign prime minister, he offers him a vacation package to show his goodwill toward the country.
o Legal or illegal, depending on the purpose
o Illegal bribe
o Legal bribe
- Nation A has a contract with Nation B which it breaks. The International Court of Justice is asked to offer a decision resolving the matter. Which of the following is false?
o ICJ cannot deviate from similar decisions it has made on contract breaches before.
o The ICJ can bind Nations A and B to an agreement even if there is no legal precedent for the situation.
o The ICJ will not hear the case if a party is not a UN member state.
o The ICJ will examine the custom of law used heretofore to help determine the right decision.
- Determine the legality of the transaction.
KlineCorp wants to conduct business with Company B in another country. While visiting Company B, the management team of Company A offers some of the foreign employees some free products from their company.
o Illegal bribe
o Legal or illegal, depending on the purpose
o Legal bribe
- Nation A has a political dispute with Nation B. The nations are at odds, but they agree to let a mediator hear the dispute. Which group would hear and decide on the nations’ dispute?
o The General Assembly
o The Security Council
o The International Court of Justice
o The Secretariat
- Nation A is new at developing monetary policy and lacks the expertise to develop a high-performing financial system. It would look to _______ for assistance.
o The World Bank
o The International Monetary Fund
o The Bank for International Settlement