Test #2 Flashcards

Question

Tender Offer

Answer 1

a public bid to the shareholders of a firm offering to buy shares a specific price for a defined period of time

Answer 2

"flip in gives current shareholders in the target company a tender offer triggered right to buy additional target company stock at a discount thus diluting the hostile bidders shares

Answer 3

substantial benefits given to top executives in the event that the company is taken over by another firm and the executive is terminated as a result of the merger

Answer 4

1. preservation of competition 2. preservation of democracy 3. preservation of small businesses or more generally the preservation of the american dream 4. an expression of political radicalism

Answer 5

1. restraint of trade | 2. monopolization, attempts to monopolize, and conspiracies to monopolize

Answer 6

``` Price discrimination exclusive dealings tying arrangements requirements contracts mergers restraining commerce or tending to create a monopoly interlocking directorates ```

Answer 7

elimination of anticompetitive practices in american commerce "unfair methods of competition and unfair" or "deceptive acts or practices in or affecting commerce" Primary enforcement device is the cease and desist order

Answer 8

competitors may not lawfully agree on prices

Answer 9

conduct by competitors that is very similar or identical but that is not the product of a conspiracy and thus is not in and of itself illegal

Answer 10

Manufactures and distributors often seek to specify the price at which their customers may resell their products

Answer 11

1. establishing a minimum price to enhance the products reputation 2. helping retailers make a profit sufficient to provide customer service 3. preventing discount stores from pricing beneath full price retail outlets 4. preventing free riders

Answer 12

Dealer agrees to sell or lease a product (the tying product) only on the condition that the buyer also purchases or leases another product (the tied product)

Answer 13

1. the existence of separate products 2. a requirement that the purchase of one of the products (the tying product) is conditioned on the purchase of another product (the tied product) 3. market power in the tying product 4. substantial impact on commerce in the tied product market

Answer 14

selling goods of like grade and quality to different buyers at different prices without justification where competitive harm results

Answer 15

a seller agrees to supply all of the buyer's needs or a buyer agrees to purchase all of a sellers output or both

Answer 16

an agreement among traders to refuse to deal with one or more traders

Answer 17

market power permitting the holder to fix prices or exclude competition

Answer 18

1. the possession of monopoly power in the relevant market and... 2. the willful acquisition or maintenance of that power as distinguished from growth or development as consequence of a superior product, business acumen or historic accident

Answer 19

an economic condition in which the market for a particular good or service is controlled by a small number of producers or distributors

Answer 20

innocently acquired via "superior skill, foresight, or industry" that is monopoly was earned. sometimes a monopoly maybe thrust upon the monopolist because the competition failed or because of natural monopoly conditions where the market will support only one firm or where large economies of scale exist

Answer 21

above 70% typically suffices to support an inference of monopoly power ability of a seller "profitably to maintain prices above competitive levels for a significant period of time"

Answer 22

1. permit the replacement of inefficient management, and the threat of replacement disciplines managers to be more productive 2. may permit stronger competition with previously larger rivals 3. may improve credit access 4. may produce effaces including economies of scale 5. frequently offer a pool of liquid assets for the use in expansion and in innovation 6. offers tax advantages 7. growth by merger is often less expensive than internal growth 8. help satisfy the personal ambitions and needs of management

Answer 23

1. too much power is being concentrated in too few hands 2. may trigger a merger movement among industry competitors 3. higher market concentration may lead to higher prices 4. innovation may be harmed 5. some companies are so larger that they can significantly shape political affairs 6. some companies may have become so large that we cannot allow them to fail

Answer 24

Horizontal: firms that are in direct competition and occupy the same product and geographic markets Vertical: 2 or more firms at different levels of the same channel of distribution Conglomerate: involves firms dealing in unrelated products

Answer 25

direct competitors seek to join together 1. coordinated effect/collusion: will the merger facilitate cooperation so that the parties might fix prices, reduce output, reduce quality, or otherwise cordinate their activities rather than competing against each other 2. Unilateral Effects: will the merger allow a firm to unilaterally raise prices, resist output, or control innovation

Answer 26

an alliance between a supplier and a purchaser

Answer 27

a merger between firms operating in separate markets and having neither buyer-seller nor competitive relationships with each other

Answer 28

Failing company doctrine: permits a merger to preserve the assets of a firm that would otherwise be lost in the market Efficiencies: desirable economic results as economies of scale or reduced transportation cost as a result of a merger

Answer 29

let the master answer. Doctrine holding employers liable for acts committed by employees while in the course of employment

Answer 30

degree of control is the dominate test where an employer controls or has the right or ability to control the workers performance, the worker is likely to be considered an employee

Answer 31

causes harm to a 3rd party or for careless training and supervision employer is liable on negligence grounds for hiring or retaining an employee whom the employer knew or should have known to be dangerous, incompetent, dishonest, or the like where that information was directly related to the injury suffered by the plaintiff

Answer 32

1. Establishment of a minimum wage that provides at least the foundation for a modest standard of living for employees 2. a flexible ceiling on hours worked weekly, the purpose of which is to increase the number of employed americans 3. child labor protection 4. equal pay for equal work regardless of gender

Answer 33

responsible for ensuring a safe workplace

Answer 34

1. preemployment testing 2. in association with periodic physical examinations 3. for cause 4. postaccident 5. follow up

Answer 35

US constitution- 4th amendment (forbids unreasonable searches and seizures) State Constitution- privacy protection Federal Statutes- Could violateTitle VII or ADA State and Local Statutes- places limits on testing Common Law Claims- invasion of privacy, defamation, negligence, intentional infliction of emotional distress, and wrongful discharge

Answer 36

1. prior consent by one of the parties to the communication 2. employer monitoring in the "ordinary course of business" by telephone or other device furnished by a provider of wire or electronic communication service

Answer 37

entitles eligible employees of covered employers to take job protected, unpaid leave for certain family related or medical reasons entitled to 12 weeks of fmla leave in a 12 month period for the birth, adoption, or foster care placement of a child, to care for a child, spouse, parent who has a serious medical condition. Employees taking leave are entitled to reinstatement to the same or equivalent job

Answer 38

requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months as long as they are not terminated for gross misconduct

Answer 39

is not under contract for a definite period of time, and as such can be fired at anytime

Answer 40

a dismissal is wrongful if it results from employee conduct that is consistent with a public good or the public interest as expressed in legislation, constitutional protections and the like

Answer 41

Forbids discrimination in employment on the basis of race, color, religion, sex or national origin Private clubs and religious organizations are exempt Forbids discrimination in hiring, firing, and all aspects of the employment relationship

Answer 42

Disparate treatment Disparate impact harassment

Answer 43

``` Plaintiff Belongs to a protected class plaintiff applied for a job for which the defendant was seeking applicants plaintiff was qualified for the job the position remained open, and the employer continued to seek applicants ```

Answer 44

job relatedness | consistent with business necessity

Answer 45

seniority employee testing bona fide occupational qualification

Answer 46

a defense in a discrimination claim where the employer argues that a particular religion, sex, or national origin is a necessary qualification for a particular job

Answer 47

if the selection rate (such as the percentage passing a test, being hired, or being promoted) for any protected class is than 80% of the selection rate for the group with the highest selection rate, then the employment practice in question will be presumed to create disparate impact

Answer 48

requires that pregnant employees be treated the same as all other employees with temporary disabilities. An employer should not ask job applicants about pregnancy, and applicants have no duty to reveal that pregnancy. Nor can a pregnant employee be forced to take time off or be forces to quit due to pregnancy

Answer 49

forbids discrimination on the basis of sex by paying wages to employees of one sex at a rate less than the rate paid to employees of the opposite sex for equal work on jobs requiring equal skill, effort, and responsibility and performed under similar working conditions

Answer 50

1. seniority system 2. merit system 3. a system that measures earnings by quantity or quality of production 4. a differential based on any factor other than sex

Answer 51

Quid Pro Quo: this for that, sexual favor in exchange for keeping ones job Hostile work environment: a work place rendered offensive and abusive by such conduct as sexual comments, pictures, jokes, sexual aggression, and the like where no benefits are gained

Answer 52

1. belongs to a protected class 2. applied for a job in which the defendant was seeking applicants 3. qualified for the job 4. denied the job 5. position remained open

Answer 53

a government or private sector program, springing for the civil rights movement, designed to actively promote the employment or educational opportunities of protected classes rather than merely forbidding discrimination

Answer 54

includes everyone wit precieved disabilities

Answer 55

Applies to employers who have contracts of $100,000 or more with the federal government or receive aid from the government employers are required to develop an anti-drug policy for employees. They must provide drug free awareness programs, acquaint employees with available assistance for those with problems, while also warning them of the penalties that accompany violations of the policy.

Answer 56

undue hardship

Answer 57

if it creates an undue hardship- an unreasonable burden- on the work place

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Test #2 Flashcards

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