Deck 25: E for Unit Five

Question 1

Leigh is an agent affiliated with More-For-Less Realtors, a real estate broker and member of the National Association of Realtors (NAR). The NAR prohibits More-For-Less and its other members from showing a listing of property for sale to prospective homebuyers via the Internet without the permission of the listing's broker. Under the principles of antitrust law, the U.S. Department of Justice is most likely to

A) attempt to prevent the NAR from imposing this ban.
B) encourage the NAR to enforce this ban as much as possible.
C) take no position with respect to the NAR's ban.
D) urge the NAR to set up a separate Web site for the banned listings.

Answer 1

A

Question 2

Kipling Metals Corporation is publicly held. Under the Securities and Exchange Commission's "notice and access" model rules, Kipling's dissemination of proxy materials to its shareholders by posting them on a Web site is

A) allowed in any circumstance but not required.
B) allowed only if warranted.
C) not allowed.
D) required.

Answer 2

A

Question 3

The official multiple listing services Web site for the Board of Realtors in Hometown, Indiana, is considering adopting a rule to prohibit local discount brokers from listing the homes they have for sale. Under the principles of antitrust law, the Federal Trade Commission is most likely to

A) attempt to prevent the Board from adopting the rule.
B) encourage the Board to adopt the rule as soon as possible.
C) take no position with respect to the Board's proposed rule.
D) urge the Board to set up a separate Web site for the discount listings.

Answer 3

A

Question 4

Reducing emissions from motor vehicles can make them more expensive to buy and maintain. Among the emissions is carbon dioxide, which can contribute to global warming. According to the United States Supreme Court in Massachusetts v. Environmental Protection Agency (EPA), with respect to carbon dioxide, the Clean Air Act

A) gives the EPA the authority to regulate.
B) prohibits the EPA from regulating because the increased expense.
C) requires the EPA to regulate because of the threat of global warming.
D) says nothing about such regulation.

Question 5

Vid Games, Inc., is a U.S. company currently involved in significant innovation and cost and quality competition with its rivals. With respect to the direction and control of A and its competitors in the United States and other countries, different models of corporate governance exist, depending on

A) the degree of capitalism in a particular nation.
B) the effect of innovation on the operations of a particular company.
C) the extent of cost efficiency in a particular corporation.
D) the quality of the products and services of a particular firm.

Question 6

Excelle Corporation is publicly held. Under the Securities and Exchange Commission's Regulation Fair Disclosure, the dissemination of material nonpublic information about Excelle solely through Excelle's Web site is

A) allowed in any circumstance but not required.
B) allowed only if warranted.
C) not allowed.
D) required.

Question 7

Burrey Enterprises, Ltd., a British firm, is harmed by a price-fixing scheme engineered by Collider Industries, S.A., an international cartel. Burrey is reluctant to file a suit against Collider in a British court, however. To promote private antitrust litigation in the United Kingdom, the British antitrust agency is encouraging judges to

A) award damages to plaintiffs with operations in the United States.
B) impose caps on attorneys' fees.
C) obtain a share of any awards.
D) waive "loser-pays" rules that otherwise apply under British law.

Question 8

Fairfield Finance, Ltd., a British firm, is harmed by a violation of British antitrust law committed by Gandor Holdings, GmbH, an international cartel. Fairfield is unable to find an attorney willing to file a suit against Gandor in a British court, however. To counter the problems of limits on attorneys' fees in such cases, a new lawsuit-financing industry is emerging in London. These groups finance lawsuits to

A) award damages to plaintiffs with operations in the United States.
B) impose caps on attorneys' fees.
C) obtain a share of any awards.
D) waive "loser-pays" rules that otherwise apply under British law.

Question 9

Global warming can raise sea levels, which threatens coastal property. Carbon dioxide can contribute to global warming. Massachusetts filed a suit against the Environmental Protection Agency (EPA) to compel it to regulate carbon dioxide, which is emitted from motor vehicles. According to the United States Supreme Court in Massachusetts v. EPA, the state

A) did not have standing to sue because the harm has not occurred.
B) did not have standing to sue because the harm may be widespread.
C) had standing to sue because its residents drive motor vehicles.
D) had standing to sue because of the imminent threat to its coast.

Question 10

DeLuxe, S.A., is a French company with offices and operations located throughout Europe. With respect to the direction and control of DeLuxe and other firms in continental Europe, the prevailing coordinated model of corporate governance gives priority to the interests of a corporation's

A) directors.
B) executive and financial officers.
C) shareholders.
D) stakeholders-employees, managers, suppliers, customers, and the community.