Deck 35: Part VI: The Regulatory Environment.

Question 1

Cool Corporation makes energy-saving air conditioning units.Cool antici?pates a change in the demand for its products as a consequence of climate change.One argument in favor of requiring Cool to disclose this informa?tion is that it could lead to

A)additional protections under the Sarbanes-Oxley Act of 2002.
B)an increase in the number of shareholder suits against competitors.
C)sound investment decisions by investors.
D)the conversion of Cool from publicly held to privately held.

Answer 1

C

Question 2

Thai Pizza Corporation is a restaurant chain with twenty locations.Under federal law,Thai Pizza must post

A)the caloric content of the foods on the chain's menu.
B)the recipes for the dishes on the chain's standard menu.
C)the chain's recommendations for the healthiest selections.
D)none of the choices.

Answer 2

A

Question 3

Pinpoint Marketing,Inc.(PMI),a credit-reporting agency,sells data about consumers to merchants and others.Consumers have some recourse if PMI

A)realizes a profit from the sales.
B)sells data about consumers who request to be "blacklisted."
C)does not report the data accurately.
D)does not tell consumers when the data is sold.

Answer 3

C

Question 4

Sayer is an employee of Thorny Foliage Eradication,Inc.Sayer tweets mes?sages about Thorny Foliage to employees and outside interested parties,in?cluding investors and others.According to the Securities and Exchange Commission,Sayer's messages are subject to

A)federal securities laws.
B)international communications regulations.
C)state blog and tweet rules.
D)no law.

Question 5

The U.S.Green Building Council verifies that a building meets certain standards before issuing a Leadership in Energy and Environmental Design (LEED)certification.Lolly hires Myron,a subcontractor,and insists that his work conform to the requirements of the LEED rating system.If the standards are not conformed to,then

A)certain tax credits may not be available.
B)the U.S.Green Building Council may impose sanctions.
C)Lolly must pay "just compensation" to the local zoning authority.
D)Myron may be denied a zoning variance.