Business Law I Final Exam Questions & Correct Solutions

Ewan, the chief executive officer of Furniture Inc., intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock. Gary buys the stock and suffers a loss. Ewan may be subject to Select one: a. only government prosecution. b. only a private investor's suit. c. negative publicity but no criminal prosecution or civil suit. d. government prosecution and a private investor's suit. {Ans: d. government prosecution and a private investor's suit.}Normal trade relations status granted to a member of the World Trade Organization means that the member will receive other members' most favorable treatment with regard to imports and exports. Select one: a. True b. False {Ans: a. True}Compliance with Title VII of the Civil Rights Act is monitored by Select one: a. businesses affected by interstate commerce. b. the Equal Employment Opportunity Commission. c. protected classes. d. state and local governing agencies. {Ans: b. the Equal Employment Opportunity Commission.}The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they Select one: a. met to review developments in the domestic market for steel. b. agreed to work together