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CLEP - Intro to Business Law > Ch. 5 The Legal Environment > Flashcards

Ch. 5 The Legal Environment Flashcards

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1
Q

______ refers to moral principles of right and wrong.

A

ethics

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2
Q

___________ theories about ethics are based on the notion that ethical behavior is guided by duties or obligations.

A

deontological

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3
Q

________ rights demand that we not harm anyone’s life, health, or liberty.

A

natural

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4
Q

______ rights are memorialized in our Declaration of Independence. They are natural (not created by gov’t), _________ (apply to everyone), and inalienable (they can’t be transferred.

A

Natural; universal

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5
Q

__________ imperative mandates particular actions, regardless of their consequences or our personal preferences.

A

categorical

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6
Q

Consequentialism views ethical behavior in terms of its ____________. It sees an action as morally right if its consequences are morally appropriate or “the ends justify the means.”

A

consequences

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7
Q

_______________ maintains that an action is justified as long as it does the greatest good for the greatest number of people.

A

utilitarianism

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8
Q

______ ethics refers to the rules of ethics that govern the practice of law and the conduct of lawyers. Most states base their rules on the American Bar Association’s “_______ rules of Professional Conduct.

A

legal; modern

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9
Q

__________ constitutes conduct that is improper or unethical. It’s a tort action of negligence against lawyers for failing to satisfy their professional duty of care owed to their client.

A

malpractice

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10
Q

The ________/_______ privilege protects communications b/w an attorney and their client so that neither party can be compelled to disclose such communication in court. The client can _____ the privilege and allow an attorney to discuss confidential communications.

A

attorney/client; waive

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11
Q

_____________ conflict of interest arises when the representation of one client will be directly adverse to another client OR there is significant risk that the representation of a client will materially limit the lawyer’s ability to provide effective representation to another client.

A

concurrent

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12
Q

A lawyer cannot enter into a business ________ with a client or knowingly acquire an interest adverse to a client unless the client consents in writing, is given an opportunity to seek independent legal advice about the transaction, and both the terms and the process by which the transaction occurs are fair, reasonable, and fully disclosed in writing.

A

transaction

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13
Q

A client’s consent must be an __________ consent. The lawyer must share with the client the conflict and not only explain the material risks but also make available a reasonable ___________.

A

informed; alternative

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14
Q

Corporate _______ ___________ refers to the idea that corporations should be concerned with the impact of their policies on the broad range of stakeholders and constituents that are affected by those policies

A

social responsibility

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15
Q

In shareholder __________, the corporation is viewed as owning a duty only to shareholders and their financial concerns.

A

primacy

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16
Q

A host of federal and state statutes require the corporation to pay heeds to other _____________, including employment laws, environmental laws, and laws regulating consumer affairs.

A

constituents

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17
Q

The government creates _____________ agencies to perform specific legislative functions and administer particular federal statutes. They are created by acts known as _________ acts.

A

administrative; enabling

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18
Q

The __________ _______________ Act also requires agencies to provide citizens with information they request, unless the information falls within certain exempted categories such as information pertaining to national defense or trade secrets.

A

Federal Information

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19
Q

Claims regarding administrative agency rules are brought before the administrative agency in hearings by their own judges, knows as ______________ ____ ________.

A

administrative law judges

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20
Q

The _________________ ____________ Act sets standards for federal agency rule making as well as standards for hearings conducted by such agencies. Administrative agencies allow their decisions to be appealed to one or two _______ boards within the agency. They may also be appealed in courts if not resolved.

A

Administrative Procedure; review

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21
Q

Courts should not ________ agency actions unless they are found to arbitrary or capricious, or not in accordance with the law.

A

overturn

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22
Q

The collection of laws, statutes, policies, regulations, and treaties that protect and preserve the environment are referred to as ________________ law.

A

environmental

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23
Q

The _________ _______________ ________ Act (NEPA) was enacted along with various federal environmental statutes to protect the environment from the actions of public and private actors.

A

National Environmental Policy Act

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24
Q

NEPA established a Council on Environmental _______ to be responsible for gathering information on the quality of the environment and for advising the president on the preparation of the Environmental Quality _______.

A

Quality; Report

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25
Q

The _________________ ___________ ________ EPA, was established to oversee pollution control efforts and they set __________ for private and public actors and ensure compliance.

A

Environmental Protection Agency; standards

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26
Q

____ ____________ refers to chemicals and other harmful pollutants in the atmosphere, is responsible for many deaths and respiratory diseases as well as eroding natural resources.

A

Air pollution

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27
Q

The _____ Air Act authorizes the EPA to determine what constitutes appropriate levels of common air pollutants and set standards for meeting those levels.

A

Clean

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28
Q

Standards on air quality are called the _________ Ambient Air Quality Standards and are designed to reduce the presence of pollutants in the air to levels that are consistent with promoting good health and preserving the environment.

A

National

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29
Q

The most prominent federal statute aimed at protecting the nations water supply is the ______ ______ Act. This ________ the discharge of pollutants into the water.

A

Clean Water; regulates

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30
Q

CERCLA or Comprehensive __________ Response, Compensation and ________ Act focuses on the clean up of abandoned or historical hazardous waste sites. They used a fund called the __________ to locate, investigate, and clean up such sites.

A

Comprehensive Environmental Response, Compensation, and Liability Act; Superfund

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31
Q

Particularly bad sites are placed on a __________ _________ list, and become the ___’s priority for clean up and remediation. Previous and current owners are ______ for cleaning up sich sites.

A

National Priorities list; EPA’s; liable

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32
Q

The Resource Conservation and Recovery Act requires anyone that handles _________ wastes to keep records of their activities and comply to rules and standards regarding ________. This focuses primarily on disposal rules for active waste sites.

A

hazardous; disposal

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33
Q

The _____ Substances Control act regulates chemical substances to protect the nation’s natural resources.

A

Toxic

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34
Q

The Federal Environmental Pesticide Control Act regulates the handling of _________ being exported and imported into the US.

A

pesticides

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35
Q

Both federal and state laws regulate the offers and sales of securities. The primary federal statutes are the _________ Act and the __________ Act.

A

Securities; Exchange

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36
Q

The Exchange Act created by the __________ and Exchange Commission (SEC) oversee the regulation of these federal securities laws. States also have laws aimed at regulating securities transactions, that are referred to as “____ ___” laws.

A

Securities; blue sky

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37
Q

An investment ________ represents:

a. an investment of _______
b. in a common enterprise
c. when the purchaser is led to expect profits
d. solely or primarily from the efforts of others.

A

Contract; money

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38
Q

Section 5 of the Securities Act provides that securities cannot be offered or sold unless they have been _________ with the SEC, using a registration statement.

A

registered

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39
Q

In the registration statement is a __________, which is a document containing information that must be delivered to investors prior to their securities’ purchase.

A

prospectus

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40
Q

Once a company issues its securities pursuant to this registration process, it is referred to as a ______ company.

A

public

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41
Q

Section 12(a)(1) imposes civil liability on anyone who offers or sells a ________ in violation of section 5 (not registered). Only a statutory seller is liable for such violation and have _______ to this action. They are:

a. person who directly sold securities to the purchaser OR
b. someone who _________ the purchaser for a financial gain or for the seller’s interests

A

security; defense; solicited

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42
Q

Section 11 imposes civil liability for materials __________________ or omissions in the registration statement. Liability extends to the issuer, its directors, the CEO, the CFO, the underwriter, and any ______ (such as lawyer or accountant).

A

misrepresentations; expert

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43
Q

__________ causation means demonstrating that the plaintiff’s damages were caused by something other than the misrepresentation or omission.

A

Negative

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44
Q

Some try to use the ___ diligence defense, depending on if they were an expert or the statement occurred in an __________ portion of the registration statement (financial statements or legal opinions) and they can prove they had no reasonable basis to believe that the registration statement contained _______ misstatements or omissions.

A

Due; expertised; material

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45
Q

Section 12(a)(2) imposes civil liability for material misstatements or omissions in a __________ or oral statements that relate to a prospectus. The seller can avoid liability by showing ____________ causation, the plaintiff knew that the statements were not true at the time of their purchase, OR the seller did not know and could not have reasonably known the statements were not true.

A

prospectus; negative

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46
Q

The Securities Act exempts some transactions from registration. Section __ exempts transactions by:

a. a person other than an issuer or underwriter AND
b. any transaction that does not involve a public offering.

A

4

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47
Q

Anyone who is helping the corporation distribute its shares is called an ____________.

A

underwriter

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48
Q

A transaction that does not involve a public offering is also referred to as a _______ placement. This is a sale to persons who do not need the protection of the securities laws.

A

private

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49
Q

Regulation __ provides specific categories of transactions that qualify as private placements.

A

D

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50
Q

Accredited ________ include institutional investors, people with over a million dollars in net worth, venture capital firms, trusts with assets over 5 million dollars, directors and executive officers of the issuing company, and other specified investors

A

investor

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51
Q

3 categories of exempted transactions - what are the rule numbers?

A

Rule 504, 505, and 506

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52
Q

Rule ___: allows an exemption for offers in which the aggregate prices is less than $1 million. There are no restrictions on the number of people in the offering. There are resale ________ but no general advertising or solicitations.

A

504; restrictions

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53
Q

Rule ___: allows an exemption for offers in which the aggregate offering prices is less than $5 million and the number of purchases is less than 35, excluding accredited investors. There ____ resale restrictions AND restrictions on general advertising/solicitations.

A

505; are

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54
Q

Rule ___: does not have a dollar limit, but allows exemptions only when there are less than 35 people (excluding accredited investors) in the offering and all the people are sophisticated. There ____ resale restrictions AND restrictions on general advertising/solicitations.

A

506; are

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55
Q

True/False: Securities may be offered to an unlimited number of accredited investors w/out exemption so long as the other requirements are met.

A

True

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56
Q

Regulation __ provides an exemption for certain small offering while Rule 704 allows exemptions for offering that occur primarily within one _______.

A

A; state

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57
Q

Regulation __ establishes an exemption for securities sold outside of the ___ and section 701 exempts transactions involving offerings to __________.

A

US; employees

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58
Q

The Securities Act also restricts the ________ of securities purchased in a private offering or securities sold on behalf of a control person, which are ________, officers, and owners of more than 10% of a corporation’s shares.

A

resale; directors

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59
Q

Rule 144 establishes certain rules for the proper resale, including requirements that such securities must be held for a least ____ year (s) and sold through a _______ in a transaction that involves a limited percentage of securities.

A

one; broker

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60
Q

The ___________ Act regulates the issuance of securities and the Exchange Act regulates all other aspects of securities transactions.

A

Securities

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61
Q

The Exchange act regulates fraud, stock __________, over the counter markets, and individuals who assist investors with _______ activities.

A

exchanges; trading

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62
Q

______ __________ are organizations that provide a location for the purchase and sale of securities such as NYSE. Other ____ the ______ _______ relate to securities transactions that occur by computer or phone such as NASDAQ.

A

Stock Exchanges; over the counter markets

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63
Q

A company that is subject to the Exchange Act is referred to as a __________ company. They issues shares to the public, have securities registered on a national securities exchange, has assets in excess of $5 million and at least 500 shareholders, or voluntarily register.

A

reporting

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64
Q

They are called reporting companies b/c they are required to file periodic ______ containing financial and other material information including an _____ ______ (10K), quarterly reports (10Q) and current reports (8K)

A

reports; annual report

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65
Q

One of the Exchange Act’s most prominent prohibitions is that against securities fraud and ______ trading. Section 10(b) and Rule 10b-5 prohibit securities ______.

A

insider; fraud

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66
Q

To be held liable for securities _____ the following elements must be proven:

a. Misstatement or omission
b. Materiality
c. In connection with a securities transaction
d. _______ (intent to deceive or defraud)
e. Reliance
f. Causation AND
g. Damages

A

fraud; Scientor

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67
Q

A _____ refers to a group of corporations or businesses that combine together in order to enhance their economic strength and market power. Trust tend to eliminate competition in the market and create a _______>

A

trust; monopoly

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68
Q

Antitrust laws are aimed at preventing _____ or monopolies that would lead to a company’s ability to ______ the market that would disadvantageous for consumers.

A

trusts; control

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69
Q

The ______ ____ _________ (FTC) regulates trusts and monopolies.

A

Federal Trade Commission

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70
Q

Congress passed the _______ Act as prohibit agreements among corporations that would restrain trade or create monopolization in an industry.

A

Sherman

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71
Q

Courts use the rule of _______ , which required courts to assess whether or not a particular restraint on trade is reasonable.

A

reason

72
Q

There are some actions that are deemed ___ __ or automatic violations of the Sherman Act. These transactions are b/w businesses in competition with one another , also known as ____________ agreements. These transactions include price ______, production ________ , group ________, and _______ divisions.

A

per se; horizontal; price fixing; production quotas; group boycotts

73
Q

_____ ________: agreements b/w competitors to set particular prices for their products.

A

price fixing

74
Q

__________ quotas: agreements to restrict the supply of products in order to drive up the prices of such products

A

production quotas

75
Q

Group _________: agreements to refrain from doing business with a particular person(s) or entity to avoid in order to force such a person or entity to pay higher prices.

A

group boycotts

76
Q

Market _______: agreements among competitors to divide the market by splitting up geographic areas in order to eliminate competition in those areas.

A

Market division

77
Q

______ agreements b/w buyers and sellers, price related agreements are per se illegal.

A

Vertical

78
Q

Most other agreements require court reviews based on the rule of ________ in order to be held illegal.

A

reason

79
Q 
There are several \_\_\_\_\_\_\_\_ agreements that raise anti-trust conserns.
\_\_\_-in agreements
\_\_\_\_\_\_\_\_\_\_\_ distributor agreements
Exclusive \_\_\_\_\_\_\_ agreements
\_\_\_\_\_ Discrimination
A

vertical; tie-in agreements, Exclusive distributor agreements, Exclusive dealing agreements, and Price discrimination

80
Q

___-in agreements are when a seller agrees to sell one product to a customer, but only on the condition that the customer purchases another product.

A

Tie-in

81
Q

Exclusive __________ agreements grant an entity an exclusive right to manufacture a product within a given area. The Clayton act prohibits such agreements with regards to commodities.

A

Distributor

82
Q

Exclusive ________ agreements require a buyer to resell products to a specific manufacture. These are prohibited by the Clayton Act if they tend to create a monopoly.

A

Dealing

83
Q

The _________ Act prohibits mergers and acquisitions that may reduce competition or create a monopoly.

A

Clayton

84
Q

Section 7A of the Clayton Act, known as the Hart-Scott-Rodino Act, required corporations to notify the FTC and US Justice Dept whenever they engage in a _______.

A

merger

85
Q

____________ law refers to the collection of state and federal laws that govern the employment relationship

A

Employment

86
Q

Unless an employee has a contract, they are deemed an employee-at-___, which means the employee or the employer can ________ the employment relationship at any time for any reason.

A

will; terminate

87
Q

Employers cannot fire someone for reasons that violate state and federal law, such as firings based on a person’s race or sex, which is under employment ____________.

A

discrimination

88
Q

Courts also recognize implied contracts, which means that if the employee can prove that the employer created an implied contract to fire the employee only for ______ causes, such a contract will prevent the employer from _____ an employee for any other reason.

A

specific; firing

89
Q

The ____ _______ __________ ___ (FLSA) establishes a federal _________ wage as well as policies for _________ pay for full and part time workers employed by private entities and the gov’t.

A

Fair Labor Standards Act; minimum; overtime

90
Q

The FLSA also seeks to protect _______, which prevents employers from hiring anyone under the age of ___ or over ___ during school hours and prohibits employers in hazardous industries from hiring children under __.

A

children; 14; 14; 18

91
Q

The _______ _________ _____ ___ (FMLA) requires the gov’t and certain private employers to give their employees leave for certain family and medical emergencies.

A

Family Medical Leave Act

92
Q

Employers must provide employees with up to ___ weeks of unpaid leave for:

a. serious health condition
b. birth, adoption, or placement of a child
c. the care of a spouse, child, or parent with a serious health condition.

A

12

93
Q

The Act applies to all gov’t employers and private employers with at least __ employees. Employees are covered if they have worked for at least ___ year(s), and has at least 1,250 hours during that year.

A

50; 1

94
Q

________ compensation laws are designed to ensure that employees who have worked-related injuries receive compensation.

A

workers

95
Q

____________ compensation provides employees with compensation for a set period of time when they become unemployed through no fault of their own. An employee must be _______ seeking new employment in order to remain eligible for unemployment compensation. Payments are typically a _________ of the compensation she received during her employment.

A

unemployment; actively; percentage

96
Q

The ______ _______ ___ was enacted to provide retirement and disability benefits to employees as well as benefits to survivors of employees. The act is overseen by the ______ ________ ____________. Funds are collected from employers and employees pursuant to the Federal ___________ Contribution Act.

A

Social Security Act; Social Security Administration; Insurance

97
Q

Two forms of retirement benefit or pension plans:
Defined ________ plans
_______ Contribution plans

A

benefit; defined

98
Q

Under defined ________ plans, employers make payments to retired employees based on the length of service and the wages received. In the defined __________ plan, the employer makes contributions to an empoyee’s account and upon retirement, the employee receives benefits from that account.

A

benefit; contribution

99
Q

The Employee Retirement _____ Security Act (ERISA) was established to regulate private pension plans. Requires employers to provide employees with particular information regarding their benefit plans and provide adequate _____ for their plans, and to appoint an ____________ for the plan who has fiduciary responsibility to administer the plan in the best interests of the plan’s employee beneficiaries.

A

Income; funds; administrator

100
Q

The Occupational _____ and _____ Act authorizes the Secretary of Labor to create health and safety standards. It also created OSHA, an agency that works with employers and employees to ensure __________ with safety standards. Additionally, it created the National Institute for Occupational Safety and Health to research health and safety issues and recommend _________.

A

Safety; Health; compliance; regulations

101
Q

__________ bargaining refers to negotiations b/w employers and groups of employees to create a collective agreement regarding employment compensation and other benefits.

A

collective

102
Q

The National _____ Relations Act grants employees the right to bargain as a group and to establish, join or assist labor organizations or unions. It requires ________ to bargain directly with employees’ representatives. The Act established the National Labor _______ Board (NLRB) to oversee its implementation, and they help resolve ________ between employees and employers.

A

Labor; employers; Relations; disputes

103
Q

____-__________ laws are aimed at preventing discrimination in the workplace based on age, religion, disability, sex, race, and national origin

A

Anti-discrimination

104
Q

Title VII of the _____ Rights Act prohibits employment discrimination and makes it unlawful to discriminate on all aspects of employment including ______, firing, recruiting, and compensation. There is one exception - if the classification is a _____ _____ occupation qualification, then it may be permitted. It also prohibits ______ harassment in the workplace.

A

civil; hiring; bona fide; sexual

105
Q

“____ pro quo” is also prohibited, where an employer requests a sexual favor in exchange for providing an employee with some ________.

A

quid; benefit

106
Q

The Equal __ Act prohibits differences in wages based on sex for men and women who perform substantially the same work.

A

Pay

107
Q

The ____ Discrimination in Employment Act prevents discrimination against employees who are __ years old or more.

A

Age; 40

108
Q

The American with __________ Act prohibits discrimination against certain employees with mental or physical disabilities. It also requires employers make __________ accommodations for employees who qualify as disabled under the ADA.

A

Disabilities; reasonable

109
Q

The _________ Discrimination Act prohibits discrimination based on pregnancy or childbirth.

A

Pregnancy

110
Q

Congress created the Equal ___________ __________ Commission (EEOC) to interpret and enforce various employment ____-___________ laws.

A

Employment Opportunity; anti-discrimination

111
Q

The EEOC establishes procedures for employees who believe they are victims of discrimination, where they can file a claim with the ____. If the claim is found to be true, EEOC will either file a ____ against the employer in federal court or notify the employee they can file suit.

A

EEOC; suit

112
Q

_________ is a person who extends credit or a loan, an hence the person to whom a debt is owed.

A

Creditor

113
Q

_________ represents the property that is the subject of a security interest.

A

Collateral

114
Q

____ is a specified amount of money owed to the creditor.

A

Debt

115
Q

________ is the person who borrows money, and thus owes a debt.

A

Debtor

116
Q

_______ _______ is an interest in property or collateral granted in order to ensure payment of a debt or obligation.

A

Security Interest

117
Q

__________ ________ is a creditor that does not have a security interest in any of the debtor’s property or assets.

A

Unsecured Creditor

118
Q

Collection of ________ can be made by the creditor and held until repayment is made. They may also _____ it in order to recover the debt, but the debtor must be made given notice of the sale Proceeds will first go towards cost associated with the sale, then must be used to satisfy the debt. If money is left over, it needs to be given to the _______.

A

collateral; sell; debtor

119
Q

A security interest in real property is called a _______/

A

mortgage

120
Q

_________ is the right of the creditor to take possession of the property.

A

Foreclosure

121
Q

Until a foreclosure the _______ has the right, referred to as the _______ of redemption, to recover the property by paying in full the amount of the debt and any cost incurred by the debtor.

A

debtor; equity

122
Q

A ____ is the right told a security interest on a debtor’s property.

A

lein

123
Q

True/False: An unsecured credit has rights to take possession of a debtor’s property if they default on their obligations.

A

False

124
Q

A _________ transaction is an agreement pursuant to which a credit receives a security interest in some _______ or asset in exchange for lending money.

A

secured; property

125
Q

To establish a security interest, there must be attachment, which cannot occur unless:

a. parties agree to create a security interest, known as a _________ __________, and must be in writing and signed
b. the creditor provides money or some other form of ___________ for the security interest AND
c. the debtor must have rights in the collateral such that she can grant them to the creditor.

A

security agreement; consideration

126
Q

In order for creditor to ensure they have priority in a security interest, it must be __________.

A

perfected

127
Q

_______________ occurs by filing a financing statement that describes the collateral and the creditor’s security interest in the collateral.

A

Perfection

128
Q

The first person to file their security interest has ________. If neither have filed, then the first person to perfect it will get priority.

A

priority

129
Q

The United States ___________ Code governs bankruptcy proceedings, and such proceedings occur in federal bankruptcy _____. It provides for the __________ or reduction of many of their debt obligations.

A

Bankruptcy; court; elimination

130
Q

A _________ proceeding is one initiated by the debtor, while and __________ proceeding is one initiated by the creditor in order to obtain payment for debts.

A

voluntary; involuntary

131
Q

Once a bankruptcy petition is created, an automatic ____, is enacted pursuant to which all collections actions must stop.

A

stay

132
Q

Three forms of bankruptcy proceedings:

Chapter 7, 11 and 13

A

Chapter 7, 11, and 13

133
Q

Chapter __: provides for the liquidation of the debtor’s assets and the liquidation is handled by a trustee who makes the determination on the amount each creditor will be entitled to receive based on the available assets. The proceedings are only available to debtors once in an __ year period.

A

Chapter 7; 8

134
Q

Chapter __: provides for a supervised reorganization of the debtor’s business. The debtor must submit a plan of _____________ to the court. The court will decide the most efficient and feasible plan.

A

11; reorganization

135
Q

Chapter __: enables debtors to create a repayment plan for certain debts and they can _____ their assets.

A

13; retain

136
Q

________ liability represents a general term used to describe the liability imposed on sellers and other persons for compensating people who have been inured as the result of a defective product.

A

Product

137
Q

Product liability actions can be brought as a ____ or contract claims.

A

tort

138
Q

There are 3 kinds of defects:

manufacturing, design, and ___________ warning defects

A

inadequate

139
Q

__________ defect occurs when a product is incorrectly manufactured in a way that makes it unreasonably dangerous to consumer. The consumer must demonstrate that an ordinary consumer would view the product as unreasonably dangerous, knows as the _______ expectation test.

A

manufacturing; consumer

140
Q

A _______ defect occurs when the design itself poses a danger to customers. An __________ _________ defect arises when a product fails to provide sufficient warnings concerning its dangers.

A

design; inadquate warning

141
Q

if the defendant ___________ the product to cause harm or knew that such harm was likely to occur, she can be liable for an intentional tort and may have to pay compensatory and __________ damages.

A

intended; punitive

142
Q

Some product liability will impose strict liability without regard to who was at fault on the defendant. This occurs if:

a. the defendant is a commercial _________ and the product reaches the consumer in the same condition it was supplied.
b. the product is unreasonably dangerous consistent with the standard established for a manufacturing defect or design defect
c. the defect existed when the product left the defendant’s control and the defect was a proximate cause of the plaintiff’s injury AND
d. the plaintiff suffered actual _______

A

supplier; damages

143
Q

_________ Protection is a concept referring to laws and statutes aimed at addressing issues of concern for consumers. consumer law covers an array of topics from bankruptcy law to product liability to _____.

A

Consumer; fraud

144
Q

The _________ _____ __________ (FTC) is an independent federal agency established to promote ________ protection and reduce unfair competition among business.

A

federal trade commission; consumer

145
Q

The Bureau of ____________ ___________ is a division of the FTC that seeks to educate consumers regarding their rights and assist the FTC with the enforcement of consumer protection laws.

A

Consumer Protection

146
Q

The _____ _____ _________ Act regulates consumer credit reporting agencies and provides procedures for regulating the proper use and release of credit reports.

A

Fair Credit Reporting

147
Q

The _______ _______ ___________ Act prohibits institutions from discrimination related to credit application.

A

Equal Credit Opportunity Act

148
Q

The Fair ____ Collection Act prohibits abusive and unfair debt collection practices, and imposes _________ on debt collectors who engage in such practices.

A

Debt; penalties

149
Q

The _____ in ________ Act is designed to ensure fair disclosure of credit terms, protecting consumers from inaccurate and unfair billing and credit card practices.

A

Truth in Lending

150
Q

The ________-_______-______ (GLB)Act was enables to protect consumer’s personal information and work with states as well as other federal agencies to generate policies that facilitate those protection efforts.

A

Gramm-Leach-Bliley Act

151
Q

GLB also prohibits ____________ which means obtaining information under false pretenses

A

pretexting

152
Q

______ competition refers to the collection of laws dealing with actions that have negative impact on a business interest, and potentially places businesses at a competitive disadvantage. ____ law represents the primary remedy for actions based on unfair competition.

A

Unfair; tort

153
Q

The _______ Act represents a federal statute that prohibits trademark infringement, and imposes penalties on those who engage in infringing behavior.

A

Lanham

154
Q

A ________ is a distinct mark or symbol that identifies a business and its products.

A

trademark

155
Q

____ secrets are formulas, practices, processes, designs, and similar confidential information that give business a ___________ _________ in the market.

A

trade; competitive advantage

156
Q

False and __________ advertising is also construed as unfair competition. The ___ regulates such advertising and brings actions against companies believed to be engaging in advertising practices harmful to consumers.

A

Deceptive

157
Q

In order to be false and deceptive, it must:

a. be false b/c it’s not true or there is no _________ to support it
b. deceptive b/c it likely to mislead the ____________ consumer and it is important to the consumer’s decision regarding whether to purchase AND
c. likely to cause injury to consumers

A

evidence; reasonable

158
Q

_______________ business law seeks to govern the business relationships and transactions b/w parties of different countries.

A

International

159
Q

The Constitution makes treaties the supreme law of the ____, and hence gives them a status equivalent to the Constitution and federal statutes.

A

land

160
Q

Treaties must be adopted by the ________ with advice and consent of at least 2/3 of the _______>

A

President; Senate

161
Q

_________ treaties refer to treaties entered into b/w two nations.

A

bilateral

162
Q

____________ treaties refer to treaties among several parties that seek to allocate right and responsibilities among the parties.

A

multilateral

163
Q

________________ means a gov’t taking of foreign citizen’s businesses and assets located in its country, generally w/out proper compensation.

A

expropriation

164
Q

______ are goods created in the US and shipped and sold in other countries. Congress enacted the _____ Trading Company Act to encourage the exportation of American goods. The act established the Department of _________ and charged it with strengthening competitiveness of American products, promoting trade, and ensuring fair trade.

A

Exports; Export; Commerce

165
Q

The Export _______________ Act (EAA) regulates exports, including implementing export controls, which restrict the exportation of certain goods based on national security and other concerns.

A

Administration

166
Q

The EAA established the Export Administration __________(EAR) to provide a framework for regulating exports and issuing licenses for exports subject to controls.

A

Regulations

167
Q

______ are good created elsewhere and shipped and sold in the US.

A

imports

168
Q

Some imports are imposed _______ or taxes. Tariffs and imports are regulated by the Bureau of _______ and Border protection, which is also responsible for preventing terrorists and terrorist weapons from entering the US.

A

tariffs; Customs

169
Q

____ trade agreements eliminate or reduce tariff rates on goods being imported from certain countries.

A

fair

170
Q

The North _______ ____ Trade Agreement (NAFTA) promotes trade among the US, Canada, and ________.

A

American Free; Mexico

171
Q

The _____ _____ _________ (WTO) seeks to promote ____ trade. Over 150 countries belong and it serves to bring countries together to negotiate the development of trading rules and principles.

A

World Trade Organization; fair

172
Q

The General Agreement on Tariffs and _____ (GATT) was the first international agreement on trading rules and ________.

A

Trades; standards.

173
Q

The ________ ________ Practices Act prohibits companies from seeking to ______ officials in order to obtain a business advantage in their country.

A

Foreign Corrupt; bribe

174
Q

The _____ Bank provides financial assistance to developing countries.

A

World

175
Q

The International Monetary ___ provides funds for countries experiencing financial difficulties.

A

Fund

176
Q

The Organisation for Economic Cooperation and __________ (OECD) seeks to promote market economics and democratic governments.

A

Development

CLEP - Intro to Business Law (8 decks)

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