LAW531 Week 5 – Quiz

LAW 531 Week 5 Quiz1. 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?RulemakingLicensingJudicial authorityExecutive power2. 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?Army Corps of Engineers AgencyNational Ambient Air Quality Standards AgencyEnvironmental Protection AgencyAir Quality Control Agency3. The Sarbanes-Oxley Act is intended to increase the confidence of the public and investors through increasing which of the following?Corporate governanceDirector complacencySeparation of powersCorporate veil4. 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 care by violation of the business judgment ruleDuty of loyalty by self-dealingDuty of obedience by competing with the corporationDuty of loyalty by usurping a corporate opportunity5. 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?The number of shareholder votes necessary to pass an actionA committee of directors selected to vote on a corporation actionA majority of shareholders required to be present to vote on a corporate actionThe number of registered shareholders eligible to vote at a given time6. The Sarbanes-Oxley Act prohibits publicly traded companies from making personal loans to whom?Its certified public accountantsIts executive officers or directorsIts majority shareholdersIts legal counsel7. 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?Federal Reserve SystemUnited States International Trade CommissionSecurities and Exchange CommissionFederal Communications Commission8. Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?Failing to predict a raw materials shortage resulting from a natural disasterFailing to react appropriately to a severe rise in the prime interest rateFailing to predict the startup of a new competitorFailing to anticipate a drop in the consumer demand of the company’s product9. Officers of a corporation typically can have which types of agency to bind the corporation?Express, transparent and impliedExpress, applied and apparentExpress, transparent and appliedExpress, implied and apparent10.Under what system of corporate voting by shareholders can a minority shareholder achieve success in electing someone to the board of directors?Proxy votingAbsentee votingCumulative votingStraight voting11.Which of the following powers do administrative agencies typically have?Statute interpretation, law enforcement and mediationLaw enforcement, statute interpretation and dispute resolutionDispute adjudication, mediation, and rulemakingRulemaking, statute interpretation and dispute adjudication12.Which of the following is true of the Federal Trade Commission?It is a federal agency created by CongressIt is a branch of the U.S. Supreme CourtIt is a corporation subsidized by the federal governmentIt is a temporary commission created by executive order that has become permanent13.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 Superfree ActThe Toxic Substances and Control ActThe Insecticide, Fungicide and Rodenticide ActThe Comprehensive Environmental Response, Compensation and Liability Act14.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 loyaltyDuty of careDuty of obedienceDuty of good faith and fair dealing15.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 Homeland SecuritySecretary of Health and Human ServicesSecretary of the InteriorSecretary of Commerce