Question 1

Which of the following is regulated by the Securities Act of 1933?

Accepted Answer

A)  fraud in the purchase and sale of securities 
B)  hedge funds and derivatives 
C)  reporting to the investors 
D)  the issuance of securities online 
A)  fraud in the purchase and sale of securities 
B)  hedge funds and derivatives 
C)  reporting to the investors 
D)  the issuance of securities online

Question 2

Continuous reporting to investors and the SEC is a requirement imposed by the Securities Act of 1933.

Accepted Answer

A) True 
 B)False

Question 3

The SEC is concerned with regulating issues and trading of securities alone and cannot regulate the activities of securities brokers and advisors.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of Section 11 of the Securities Act of 1933?

Accepted Answer

A)  It permits injured private parties to bring criminal action against fraudulent registration statements filed by issuers. 
B)  It imposes liability on those who are negligent in not discovering the fraud. 
C)  It allows an issuer to assert a due diligence defense against the imposition of Section 11 liability. 
D)  It cannot be imposed on cases involving negligent omission of a material fact in a registration statement. 
A)  It permits injured private parties to bring criminal action against fraudulent registration statements filed by issuers. 
B)  It imposes liability on those who are negligent in not discovering the fraud. 
C)  It allows an issuer to assert a due diligence defense against the imposition of Section 11 liability. 
D)  It cannot be imposed on cases involving negligent omission of a material fact in a registration statement.

Question 5

Interests or instruments that are expressly mentioned in securities acts are known as ________.

Accepted Answer

A)  common securities 
B)  implicit securities 
C)  investment contracts 
D)  statutorily defined securities 
A)  common securities 
B)  implicit securities 
C)  investment contracts 
D)  statutorily defined securities

Question 6

Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of 1933.

Accepted Answer

A) True 
 B)False

Question 7

A 10 percent shareholder of an equity security of a reporting company is considered a statutory insider.

Accepted Answer

A) True 
 B)False

Question 8

The ________ is a federal statute that primarily regulates the issuance of securities by companies and other businesses.

Accepted Answer

A)  Securities Act of 1933 
B)  Securities Exchange Act of 1934 
C)  Sarbanes-Oxley Act of 2002 
D)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 
A)  Securities Act of 1933 
B)  Securities Exchange Act of 1934 
C)  Sarbanes-Oxley Act of 2002 
D)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

Exam 41: Investor Protection and E-Securities Transactions

Which of the following is regulated by the Securities Act of 1933?

Continuous reporting to investors and the SEC is a requirement imposed by the Securities Act of 1933.

The SEC is concerned with regulating issues and trading of securities alone and cannot regulate the activities of securities brokers and advisors.

Which of the following is true of Section 11 of the Securities Act of 1933?

Interests or instruments that are expressly mentioned in securities acts are known as ________.

Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of 1933.

A 10 percent shareholder of an equity security of a reporting company is considered a statutory insider.

The ________ is a federal statute that primarily regulates the issuance of securities by companies and other businesses.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, Mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, Real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, Trusts, and Estates

Family Law

International and World Trade Law

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