Question 1

The Williams Act amendments to the 1934 Act were designed to:

Accepted Answer

A)  provide penalties for fraudulent sales and permit the issuance of injunctions to protect investors from anticipated fraudulent acts. 
B)  protect investors from promoters and security salespersons who offered stock in companies organized to pursue visionary schemes. 
C)  force corporations to comply with stockholders' social goals of meeting the EPA's new source emission standards. 
D)  give the bidder and the target company equal opportunities to present their cases to the shareholders. 
A)  provide penalties for fraudulent sales and permit the issuance of injunctions to protect investors from anticipated fraudulent acts. 
B)  protect investors from promoters and security salespersons who offered stock in companies organized to pursue visionary schemes. 
C)  force corporations to comply with stockholders' social goals of meeting the EPA's new source emission standards. 
D)  give the bidder and the target company equal opportunities to present their cases to the shareholders.

Question 2

Section 11 of the 1933 Act is considered a radical liability section because the defendant has the burden of proving that he exercised due diligence.

Accepted Answer

A) True 
 B)False

Question 3

When a security is sold in exempt transaction,all its subsequent sales are also covered by the exemption.

Accepted Answer

A) True 
 B)False

Question 4

Jack Monroe had bought 200 GE common shares on the New York Stock Exchange that he could easily sell without any SEC registration.Jack was able to do so because:

Accepted Answer

A)  it was not a large number of shares. 
B)  he wasn't selling an insurance policy. 
C)  it was a nonprofit private offering. 
D)  he was not an issuer, underwriter, or dealer. 
A)  it was not a large number of shares. 
B)  he wasn't selling an insurance policy. 
C)  it was a nonprofit private offering. 
D)  he was not an issuer, underwriter, or dealer.

Question 5

The 10-K annual report is intended to update the information required in the 1934 Act registration statement.

Accepted Answer

A) True 
 B)False

Question 6

The Securities Act of 1933 is a one-time disclosure statute,although some of its liability provisions purport to cover all fraudulent sales of securities.

Accepted Answer

A) True 
 B)False

Question 7

The Securities Act of 1933:

Accepted Answer

A)  is concerned primarily with private distributions of securities and does not provide provisions to cover fraudulent sale of securities. 
B)  regulates the sale of securities while they are passing from the hands of the issuer into the hands of the private investors. 
C)  requires that issuers selling securities publicly make necessary disclosures at the time the issuer sells the securities to the public. 
D)  requires that all material information about the issuer be disclosed. 
A)  is concerned primarily with private distributions of securities and does not provide provisions to cover fraudulent sale of securities. 
B)  regulates the sale of securities while they are passing from the hands of the issuer into the hands of the private investors. 
C)  requires that issuers selling securities publicly make necessary disclosures at the time the issuer sells the securities to the public. 
D)  requires that all material information about the issuer be disclosed.

Question 8

Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities.Are they exempted from the antifraud provisions of the act as well?

Accepted Answer

Examples may vary.Some securities are ex

Question 9

Describe the Foreign Corrupt Practices Act and the reason for its enactment.

Accepted Answer

In an attempt to prevent bribery and oth

Question 10

A person with inside information must either disclose the information before trading or refrain from trading.

Accepted Answer

A) True 
 B)False

Exam 31: Securities Regulation

The Williams Act amendments to the 1934 Act were designed to:

Section 11 of the 1933 Act is considered a radical liability section because the defendant has the burden of proving that he exercised due diligence.

When a security is sold in exempt transaction,all its subsequent sales are also covered by the exemption.

Jack Monroe had bought 200 GE common shares on the New York Stock Exchange that he could easily sell without any SEC registration.Jack was able to do so because:

The 10-K annual report is intended to update the information required in the 1934 Act registration statement.

The Securities Act of 1933 is a one-time disclosure statute,although some of its liability provisions purport to cover all fraudulent sales of securities.

The Securities Act of 1933:

Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities.Are they exempted from the antifraud provisions of the act as well?

Describe the Foreign Corrupt Practices Act and the reason for its enactment.

A person with inside information must either disclose the information before trading or refrain from trading.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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