LAW 531 Week 5 Quiz

LAW 531 Week 5 Quiz


If a corporate officer in the position of secretary intentionally takes over the powers provided to the treasurer in the corporate documents, what fiduciary duty does that corporate secretary breach?

Duty of obedience


Duty of loyalty


Duty of good faith and fair dealing


Duty of care


According to the provisions set forth by the Sarbanes-Oxley Act, which federal government agency may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company?

Securities and Exchange Commission


Federal Reserve System


Federal Communications Commission


United States International Trade Commission


In order to prevent and clear hazardous wastes that increase mortality or serious illness, the federal government established a specific method to finance the cleaning of polluted areas by enacting what statute?

The Toxic Substances and Control Act


The Superfree Act


The Comprehensive Environmental Response, Compensation, and Liability Act


The Insecticide, Fungicide, and Rodenticide Act


Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker safety rules. As a result, there have been an increased number of on-site accidents and several construction workers have sustained serious injuries. Which of the following powers will allow an administrative agency to bring agency proceedings against Tuff-Steele Constructions?





Executive power


Judicial authority


The Sarbanes-Oxley Act prohibits publicly traded companies from making personal loans to whom?

Its majority shareholders


Its legal counsel


Its executive officers or directors


Its certified public accountants


In order to protect wildlife that may be subject to scarcity, which Executive Branch cabinet member designates which species of wildlife may be endangered or threatened?

Secretary of Health and Human Services


Secretary of Commerce


Secretary of Homeland Security


Secretary of the Interior


Which of the following powers do administrative agencies typically have?

Statute interpretation, law enforcement, and mediation


Rulemaking, statute interpretation, and dispute adjudication


Dispute adjudication, mediation, and rulemaking


Law enforcement, statute interpretation, and dispute resolution


Officers of a corporation typically can have which types of agency authority to bind the corporation?

Express, transparent, and applied


Express, implied, and apparent


Express, transparent, and implied


Express, applied, and apparent


If a corporate officer or director acts in a manner to make use of an advantage that he or she knows will only benefit himself or herself and deprives the corporation of that advantage, what breach of fiduciary duty has been committed?

Duty of loyalty by usurping a corporate opportunity


Duty of obedience by competing with the corporation


Duty of care by violation of the business judgment rule


Duty of loyalty by self-dealing


Unless otherwise stated in the articles of incorporation, a quorum to hold a meeting of the shareholders is generally defined as which of the following?

A committee of directors selected to vote on a corporation action


The number of shareholder votes necessary to pass an action


The number of registered shareholders eligible to vote at a given time


A majority of shareholders required to be present to vote on a corporate action


Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?

Failing to predict the startup of a new competitor


Failing to predict a raw materials shortage resulting from a natural disaster


Failing to react appropriately to a severe rise in the prime interest rate


Failing to anticipate a drop in the consumer demand of the company’s product


The Sarbanes-Oxley Act is intended to increase the confidence of the public and investors through increasing which of the following?

Corporate veil


Corporate governance


Director complacency


Separation of powers


In 1970, Congress established an administrative agency to enforce statutes enacted to protect the air and water of this country. What is the name of this agency?

Environmental Protection Agency


Air Quality Control Agency


National Ambient Air Quality Standards Agency


Army Corps of Engineers Agency


Which of the following is true of the Federal Trade Commission?

It is a branch of the U.S. Supreme Court


It is a federal agency created by Congress


It is a corporation subsidized by the federal government


It is a temporary commission created by executive order that has become permanent


Under what system of corporate voting by shareholders can a minority shareholder achieve success in electing someone to the board of directors?

Cumulative voting


Absentee voting


Proxy voting


Straight voting