LAW 531 Week 5 Quiz

LAW 531 Week 5 Quiz

1

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

Correct
2

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

Correct
3

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

Correct
4

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?

Licensing

 

Rulemaking

 

Executive power

 

Judicial authority

Correct
5

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

Correct
6

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

Correct
7

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

Correct
8

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

Correct
9

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

Correct
10

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

Correct
11

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

Correct
12

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

Correct
13

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

Correct
14

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

Correct
15

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