Question

18. What is the Sarbanes-Oxley Act?

a. The law requiring registration of securities

b. A law relating to financial reporting standards

c. The law that prohibits insider trading in securities

d. The law that prohibits agreements in restraint of trade

19. Brautigan Mayonnaise sells its product only in grocery stores and restaurants west of the Rockies. TFIA Mayonnaise is sold in the rest of the country, and has only limited sales in Brautigan’s territory. Both companies dominate the mayonnaise markets in their respective regions. TFIA and Brautigan agree to merge, in order to take advantage of economies of scale in purchasing ingredients, as well as in marketing and advertising. Is the merger of these two companies a violation of antitrust law?

a. No, because there is no agreement to restrain competition.

b. Yes, because the merger between two dominant companies will harm competition.

c. Yes, because a merger between two dominant companies is generally an antitrust violation.

d. No, because the merger will not harm competition.

20. What is a general warranty deed?

a. A deed that guarantees the property will be in good condition

b. A deed that promises that the grantor has good title to the property

c. A deed that promises the grantor will give up all claims to the property

d. A deed that says the grantor has done nothing to affect the title to the property

Answer 1

18. The correct option is b. A law relating to financial reporting standards

19. The correct option is d. No, because the merger will not harm competition.

20. The correct option is b. A deed that promises that the grantor has good title to the property