Deck 27: the Uniform Commercial Code Article 2 and 2a

Question 1

PowerSoft Corporation creates an internal social media network using enterprise social networking software and systems.Concerns about the use of an internal social media network include how to

A)keep the data safe.
B)make the data public.
C)provide access to all files to all employees.
D)maintain a personal, lively, and entertaining tone.

Answer 1

A

Question 2

Pond Stock Inc.is a start-up fishery with prospects but no profits as of yet.Pond Stock may be most likely to obtain financing successfully by

A)applying to banks, which are generally willing to lend to start-ups.
B)approaching foreign governments, under which investment laws are less strict than in the United States.
C)attracting venture capital, of which there is more than enough available.
D)crowdfunding.

Answer 2

D

Question 3

Odell, an officer of Professional Sportsgear Corporation, uses special software to help identify employees who might commit embezzlement and other wrongful acts.The software performs this function by

A)scanning e-mail for certain words and phrases.
B)looking for anomalies in the firm's financial records.
C)recording phone calls for a third party's review.
D)archiving all electronic communication as potential evidence.

Answer 3

A

Question 4

Porto Bella Ltd., a Brazilian firm, requires its employee David to stay connected with work after office hours through a smartphone.In Brazil, David and other employees who are required to use mobile devices after work are

A)entitled to receive overtime wages.
B)prohibited from receiving overtime wages.
C)considered overworked and underpaid.
D)paid by their government for staying connected.

Question 5

Eduard is a shareholder of Deutsche Internationale, a German firm.In Germany

A)most claims against firms are alleged in shareholders' derivative suits.
B)the law does not provide for derivative litigation.
C)derivative actions can only challenge directors' actions that shareholders could not legally ratify.
D)if a derivative action is unsuccessful, a firm can sue the plaintiff.

Question 6

Armand, an employee of Big Data Corporation, is authorized to access company trade secrets.Armand downloads those secrets onto a thumb drive.He then quits Big Data's employ and goes to work for Cloud Analytics, Inc., a Big Data competitor, with whom he shares the secrets.Under the court's interpretation of the Computer Fraud and Abuse Act (CFAA) in United States v.Nosal, Armand's use of the secrets is

A)a civil violation of the CFAA.
B)not a violation of the CFAA.
C)a criminal violation of the CFAA.
D)an unethical violation of the CFAA.

Question 7

AdGraphix Inc.hires permalancers.From AdGraphix's perspective, the advantages of employing these individuals include

A)paying workers' compensation.
B)providing healthcare benefits.
C)letting permalancers go quickly and without cost.
D)avoiding IRS worker-classification regulations.

Question 8

Roshini is a shareholder of Satsui, Ltd., a Japanese firm.Roshini brings a derivative action against the company.If the action is unsuccessful, Satsui

A)can sue Roshini for damages.
B)must pay Roshini's legal fees.
C)must apologize to Roshini.
D)must accept Roshini's apology in lieu of costs, fees, or damages.

Question 9

Geo Global Corporation, a U.S.firm, requires its employee Marcy to stay connected with work after office hours through a smartphone.In the United States, Marcy and other employees who are required to use mobile devices after work may have a valid claim to overtime wages if they

A)are not exempt under the overtime regulations of the Fair Labor Standards Act.
B)are not reimbursed by their employers for the use.
C)are supplied with the devices by their employers.
D)do business with international contacts.

Question 10

Casino Club requires its female employees to wear make-up.Male employees are not required to wear make-up but must "look neat." Dhara, a bartender at the club under an at-will employment contract, is fired for not complying with the make-up rule.Under the court's ruling on similar facts in Jesperson v.Harrah's Operating Co., Dhara is most likely entitled to

A)reinstatement.
B)no relief.
C)damages.
D)an injunction against the enforcement of Casino's "lookism" rule.

Question 11

Taco-Taco Pizza, Inc., offers entrepreneurs the opportunity to operate a franchise under the Taco-Taco Pizza trade name as a member of a select group of dealers.To possible investors, Taco-Taco Pizza makes claims about the earnings potential of a franchise.For those claims, the franchisor must have

A)a hypothetical basis.
B)a reasonable basis.
C)an actual basis.
D)no basis.

Question 12

Screenworx Inc.is a start-up film production firm with prospects but no profits as of yet.Under the JOBS Act, Screenworx and other similarly situated companies can look for financing by advertising investment opportunities to

A)the public.
B)accredited investors only.
C)unaccredited investors only.
D)banks and venture capitalists but not throughcrowd fundingsites.

Question 13

Nikita, an employee-agent of Operational Processes, Inc., is authorized to access company trade secrets.Nikita downloads those secrets onto a thumb drive.She then quits Operational's employ and goes to work for Quantum Analysis, Inc., an Operational competitor, with whom she shares the secrets.With respect to the agent's duty of loyalty to her principal, this is

A)unethical, but not illegal.
B)neither unethical nor illegal.
C)illegal, but not unethical.
D)unethical and illegal.

Question 14

Jim is shorter than Kevin, and Lonna is less attractive than Merilyn.Research shows that compared with taller men and more attractive individuals, Jim will likely make less income and Lonna will receive poorer performance reviews and a lower salary.Appearance-based discrimination has been barred by

A)Michigan and at least six cities.
B)none of the choices.
C)all of the states.
D)the federal government.

Question 15

Korean Hot Dogs Inc.offers entrepreneurs the opportunity to operate a franchise under the Korean Hot Dogs trade name as a member of a select group of dealers that engage in retail fast food sales.To potential investors, the franchisor must provide

A)actual earnings figures.
B)hypothetical earnings figures.
C)projected earnings figures.
D)none of the choices.

Question 16

Forms of business organizations that limit the liability of their owners are available to businesspersons around the world.Among the features that such firms have in common, in most nations

A)articles of organization must be filed to form the enterprise.
B)one of the owners must be a foreign entity.
C)the organization can have an unlimited number of owners.
D)the owners are not required to choose persons to manage the business.

Question 17

Heinz Kirche, GmbH, is a German Gesellschat mit beschranker, or "company with limited liability." A significant difference between a GmbH and a U.S.limited liability company (LLC) is that

A)German law imposes many restrictions on the operations of GmbHs.
B)German law imposes no restrictions on the operations of GmbHs.
C)U.S.law requires an LLC to have an operating agreement.
D)U.S.law requires that an LLC be owned by shareholders.

Question 18

Roboto Robotics Inc.creates an internal social media network using enterprise social networking software and systems.The advantages of an internal social media network include

A)obtaining real-time information about important issues.
B)mass e-mailings.
C)employees' posts of personal notes.
D)"white noise."

Question 19

Game Apps Corporation hires independent contractors instead of employees.If these workers are determined to have been misclassified, Game Apps may be liable for

A)a seniority and tenure system.
B)back payroll taxes.
C)copyright and trademark royalties.
D)job reinstatement.

Question 20

Drew, an officer of Energy Resources Inc., uses special software to help identify employees who might commit embezzlement.One reason for Drew's use of this software may be to avoid liability for

A)embezzlement.
B)negligence.
C)violation of the business judgment rule.
D)violation of the duty of loyalty.