Deck 13: Media Business Law

Question 1

Which of the following actions is a regulation on media ownership?

A) The United States Constitution
B) The Norris-LaGuardia Act
C) The Sherman Antitrust Act
D) The Wagner Act

Answer 1

C

Question 2

Which of the following is not a labor union specifically for media employees?

A) American Federation of Labor and Congress of Industrial Organizations
B) National Association of Broadcast Employees and Technicians
C) International Alliance of Theatrical Stage Employees
D) Screen Actors Guild

Answer 2

A

Question 3

All but one of the following are employment situations where a non-compete clause is appropriate. Which option does not belong?

A) A financial advisor
B) A janitor employed at an amusement park
C) A pharmaceutical research scientist
D) A television anchor

Answer 3

B

Question 4

Adopted in 1935, __________ functions, in part, to protect employees from punishment for engaging in union activity.

A) The National Labor Relations Act
B) The Federal Trade Commission Act
C) The Securities and Exchange Act
D) The Telecommunications Act

Question 5

A newspaper reporter promises his source to keep the source's identity confidential when running a story that indicts his employer. The secret source is accidentally named in the story and subsequently fired from his job. What legal doctrine allows the source to sue for damages?

A) Habeus corpus
B) Nolo contendere
C) Writ of mandamus
D) Promissory estoppel

Question 6

"Coogan's Law" requires which of the following items on behalf of child actors and performers?

A) child actors to work no more than 2 hours per day
B) teachers be provided at the work site for all school-aged children
C) parents to be on the work site with their children at all times
D) producer to pay at least 15 percent of a child actor's fee to a trust account accessible only by the actor once he/she reaches the age of majority

Question 7

Federal legislation requiring employers to provide equal employment opportunities prohibit them from making decisions on firing and hiring based on all of the following classifications except ___ .

A) Race
B) Residence
C) Gender
D) Creed

Question 8

The National Labor Relations Act (NLRA) grants all of these rights to employees except ___.

A) right to form labor organizations
B) right to pass through picket lines during strikes and walkouts
C) right to bargain collectively through representatives
D) right to engage in concerted activities for the mutual aid and protection

Question 9

Legal language generally accompanying advance press releases for stock sales warn investors of "risks and uncertainties" that generally covers what item(s) below?

A) changes in interest
B) relative stability of the corporation
C) taxing authorities
D) all of the above

Question 10

The illegal business practice where market participants base decisions on confidential information not known generally to the market is known as ____ .

A) misrepresentation
B) fraud in the inducement
C) insider trading
D) promissory estoppel

Question 11

A U.S. company wishing to take control of one of its publicly traded competitors must disclose what to the SEC?

A) name of the target company
B) number of shareholders involved
C) reason for the merger
D) all of the above

Question 12

Employment laws generally apply to all of the following except

A) anchors
B) independent contractors
C) producers
D) college interns

Question 13

Suppose Aaron Wannabe is offered a job with the law firm of Amber, Lance & Chaser. During the interview, senior partner Lance discusses with Wannabe their unwritten policy of the firm requiring new hires to work for at least three years. Wannabe, however, tries to terminate his employment after just two years when offered the drummer's position in a band. If a legal arbitrator finds Wannabe must remain with the firm for the full three years, what term below is likely relevant?

A) offer
B) counter-offer
C) implied acceptance
D) retraction or revocation

Question 14

Renee Ashton is a world-renowned lyric soprano. Renee has performed famous operatic roles in virtually every country around the world, but settles in Orlando, Florida when she tires of traveling. Renee signs a 5-year contract with Disney containing a non-compete clause. Two years into the contract, Renee terminates her employment with Disney to sing with the Orlando Opera Company. Based on the non-compete clause, a court may force Renee to return to Disney for the duration of the contract.

Question 15

Par Ol and his neighbor, Evie Dentz, were standing on the sidewalk discussing the state of landscaping on their two properties. Ol was admiring the new trim Dentz had installed around her flowerbeds. In their conversation, Dentz orally agreed to install the same trim on Ol's property if he would pay her the cost of the supplies plus $100. Dentz purchased the trim, but used it on another of her flower beds. Dentz is not in breach because a valid contract was not formed.

Question 16

Aunt Sipatory offered to pay her nephew $10,000 for attending and completing high school with a 4.0 GPA. Nephew N. Pharby Tween replies that he will only do it if Sipatory agrees to pay him $10,000 and buy Tween a brand new Mustang. Nephew's conditional acceptance has created a valid contract.

Question 17

Swole Chesticles trains Slim Shady every Tuesday at the same gym. Swole offers to train Slim an additional day, every Thursday, for the same fee to prepare him to participate in the Gladiator Games competition. Shady arrives at the gym the next Thursday and is trained by Chesticles. There is no valid contract between the two men because Shady did not accept Chesticles' offer.

Question 18

A conditional acceptance is sufficient to create a valid contract where the elements of offer and consideration are also satisfied.

Question 19

WYME is seeking to hire a new co-anchor for the prime time news. In compliance with all federal and state regulations, WYME does not have to do any more than post the opening in the local paper.

Question 20

Roman's Empire, Inc., a conglomerate owning 50 percent of the broadcast and print media in the United States, intends to sale some of its stocks. Roman's files a registration statement with the SEC. Roman's may immediately begin promoting the stock sale.

Question 21

A reporter for The Times has written a story divulging critical information about publicly traded Anderson Corp. which would cause the corporations stocks to double in value. Prior to the story's publication, the reporter may validly purchase a significant amount of stock in Anderson Corp.

Question 22

TeeVee News, Inc. decides to initiate a stock sale. The president of TeeVee purposefully inflates the numbers on stock performance to make the company's history appear more successful than it truly was. The president may take such action to insure the success of the stock offering without accruing any personal liability.

Question 23

WINO-TV has several job openings that it needs to fill. As you may recall from your book, a court in 1998 struck down the FCC's Equal Employment Opportunities rules, and rules the FCC created in 2000 were struck down in 2001. Therefore, the status of the current law only requires WINO to post an advertisement of the job openings on a company bulletin board, and not to discriminate in its hiring.