1. At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market – Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be:
The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market.
The company would not be deemed guilty of monopolization of commerce.
The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer).
The company committed a horizontal restraint of trade by “freezing out” its main competitors.

2.Dan assigns to Evan a contract to buy a used car from Fran. To be valid, the assignment must
be in writing and be signed to Dan.
be supported by adequate consideration from Evan.
not be revocable by Dan.
not materially increase Fran’s risk or duty.

 3. Digital Products Company agrees to sell to Eagle Manufacturing, Inc., a customized software system. If Eagle materially breaches the contract, the remedies available to Digital include the right
to cancel the contract only.
to recover damages only.
to cancel the contract and recover damages.
none of the above.

 4. Shaquille is hired as a clerk in a “check-cashing store.” He receives a notice in the mail to attend “jury duty.” His boss tells him that he MUST work and can NOT attend jury duty because he is needed at work. Nonetheless, Shaquille goes to jury duty and is picked as a juror. Eventually, after a five day trial, he returns to work. His boss then fires him for being absent even though Shaquille called each day to inform his boss that he was on jury duty. When Shaquille informs his boss that he intends to sue him for “wrongful discharge,” the boss laughs and tells Shaquille that he cannot sue because he is only an employee at-will. Which of the following is the most accurate statement?
a. The boss is right since an employee at-will can be fired for virtually anything.
b. The boss is right since everyone who is absent from work can be fired.
c. The boss is wrong since there was an implied contract that Shaquille could remain at his job for a reasonable amount of time.
d. The boss is wrong because being fired under these circumstances is likely a violation of the Public Policy doctrine.

1. Eric wrote Donna a check for $50. Eric accidentally dated the check 3/1/07, even though it was actually 3/1/08 when he wrote the check. Eric thought that there was $75 in the account, but there was actually only $10 in the account. Which one of the following scenarios is most likely to occur? 

A. The bank will not honor the check because it’s stale. 

B. The bank will not honor the check because it’s postdated. 

C. The bank will honor the check, even though it will result in an overdraft. 

D. The bank will honor the check, even though a stop-payment order has been made. 

 

2. Erica writes a $100 check to Sam. Sam takes the check to his bank, endorses the check, and deposits it into his bank. This process is best described as 

A. transfer by assignment. 

B. taking for value. 

C. transfer by negotiation. 

D. transfer to a holder in due course. 

 

3. Sara wrote a check to Steven in the amount of $100 to be drawn from her account at Big Money Bank. When took the check to Big Money Bank to be cashed, Big Money refused to pay the check because Sara’s deposit wasn’t made in time to be credited to her account for that day and wouldn’t be available until the next day. Which of the following is true about this turn of events? 

A. Sara is liable to Steven for the $100. 

B. Sara is not liable to Steven for the $100. 

C. Big Money Bank is liable to Sara for the $100. 

D. Big Money Bank is liable to Steven for the $100. 

 

4. Joan noticed one day that her bank debit card was missing from her purse. Joan notified her bank immediately. When Joan received her statement the next month, the bank charged her $500 for withdrawals made after the debit card disappeared. Which one of the following laws do the charged violate? 

A. Federal Trade Commission Act of 1914 

B. Electronic Fund Transfer Act of 1978 

C. Banking Act of 1999 

D. Electronic Communications Privacy Act of 1986 

 

Question 1 Bribery, though commonly thought wrongful, arguably can be considered moral pursuant to:

 a.Utilitarian ethics if the overall greater good is achieved by paying the bribe even though there are certain negative consequences for some stakeholders (such as the competition and the host society).

b.Ethical egoism from the vantage point of the company paying the bribe if they really need the contract with the foreign government and they have a policy of “letting the locals deal with the locals.”

 c.Ethical relativism if making the lavish “gifts” (that is, “bribe” payments”) to foreign government officials is considered to be an acceptable and appropriate practice and custom in the host county.

d.All of the above.

 

Question 2 Pat, product development manager for Agricultural Hybrids, Inc., applies Utilitarian ethics to determine that an action is morally correct when it produces

The greatest good for Pat

The greatest good for the most people affected by the action

The greatest good for Pat’s company and its shareholders since they are the only true stakeholder groups

Good emotional feelings that arise in Pat

 

 

Question 3 Ethics is best described as:

The metaphysical study of ultimate reality.

The theoretical study of morality.

The constitutional analysis of equal protection and due process decisions

 

None of the above.

 

Question 4 Which is false about the Italian political scientist and philosopher, Niccolo Machiavelli?

He viewed people generally very negatively in that they are selfish, greedy, unscrupulous, treacherous, cowardly, stupid, and short-sighted.

He believed that the only true reality, value, good, and goal is power.

He believed that a “virtuous” action could be a traditionally “bad” one if was absolutely necessary to achieve and maintain power.

None;

all are true.

 

Question 5 Machiavellian “ethics” is basically premised on the views of:

The Roman Catholic

Church Socrates

The Sophists

The Italian parliament.

 

Question 6 Ingrid firmly believes that each person must look at her own feelings of what is right and wrong in order to decide what is moral. Which of the following ethical theories most accurately describes Ingrid’s beliefs?

Utilitarianism

Ethical Emotism

Social Justice

Ethical Relativism

 

Question 7 Which statement is NOT part of Kant’s Categorical Imperative?

a. When in Germany, do as the Germans would do.

b. Treat people always with dignity and respect.

c. Act only under those maxims that you would be willing to have as universal “laws.”

d. Act only if you would be willing to be the agent/giver or the receiver of the action.

 

Question 8 The famous French adage, “The heart has its reasons that reason knows not,” is best reflected in what ethical theory?

 Kant’s Categorical Imperative.

 Ethical Relativism.

Ethical Emotism

Legal Postivism.

 

Question 9 Which of the following is not an accurate statement?

The fact that there are differences among societies in moral positions means logically that there are no, and can never be, any moral standards or rules.

 

The doctrine of legal positivism would maintain that a business person rely on the law as a basis for decision-making when confronted with a moral question.

 

According to the Hobbesian view of legal positivism, there can be no such thing as a bad, immoral, or unjust law.

 

According to Bentham, Utilitarianism is an objective, scientific, mathematical, and empirical ethical theory.

 

Question 10 According to the Natural Rights theory of John Locke,

 

a. All people possess in the State of Nature and thus by the Natural Law certain inalienable rights – the right to life, liberty, and property.

b. Natural Rights supersede any legal, government, or political laws.

c. Natural Rights supersede any social conventions and local customs.

d. All of the above.

 

 

 

Question 1 

The state of Mississippi passes a law that prohibits waste hauling companies from bringing out-of-state garbage to dumps located in Mississippi. Mississippi garbage would still be permitted. This law is challenged as unconstitutional by an out-of-state waste hauling company that plans to bring garbage from another state into Mississippi for dumping. The likely result of such a lawsuit would be?

The Mississippi law would be upheld as part of the power of the state to protect its citizens and residents from unpleasant sights and smells.

The Mississippi law would be struck down as unconstitutional because it discriminates against interstate commerce.

The Mississippi law would be struck down because only the federal government and the Environmental Protection Agency can regulate garbage transportation and dumping.

The Mississippi law would be upheld since transportation of garbage is not really “commerce.”

 

Question 2 

Pursuant to U.S. statutory immigration law, immigrant visas can be granted to immigrants who possess “extraordinary” knowledge, abilities, and talents since they will benefit the United States. Idi Obuku is a drum-maker from Uganda who specializes in making native drums and other local cultural artifacts. He is denied an immigrant visa by the Immigration Division of Homeland Security after an administrative hearing because he was not deemed to be sufficiently “extraordinary.” He appeals the agency’s decision to the federal court. The result of this lawsuit likely will be:

Idi Obuku will win since all immigration determinations have to be made after a trial in federal district court.

He will lose because he is from Africa.

He will lose because there is no right to appeal immigration decisions now that Immigration is part of Homeland Security.

He will win if he can convince the federal court to substitute its interpretation and application of the law for that of the agency.

 

Question 3 

Applying Aristotle’s Doctrine of the Mean to corporate social responsibility, one can best say that:

A company should give generously to local charities or else it will get a reputation in the community for being mean.

A company need not get involved in civic and community affairs and give to charities unless legally obligated to do so.

A company should focus on profit first but also do “good deeds” in the community but in a prudent manner.

A company should require its employees to donate their own money and time to charities but make sure that the company gains the good reputation from their efforts.

 

Question 4 

In the old, American, pre-Civil War South, slavery ethically could be considered:

a. Moral if one was a Legal Positivist.

b. Moral if one was an Ethical Relativist

c. Immoral if one s  Kantian

d. All of the above.

 

1) BVM sold 25,000 units and was able to breakeven last year.  Variable costs will increase
30% next year.  What information is needed to calculate their new breakeven point?
a) Costs per unit
b) Sales price per unit and costs per unit
c) Total fixed costs, sales price per unit, and costs per unit
d)  No additional data is needed.

2) The probability distributions for NPW for two mutually exclusive alternatives are shown in the table. Assume the NPW random variables are independent.

Project 1	Project 2
X             P(NPW1 = x)	Y              P(NPW2 = y)
$1,000   0.3 $2,000   0.7	$500       0.4 $3,000   0.6

 

a)  Project 2 is preferred because E[NPW2] < E[NPW1] and Var[NPW2] > Var[NPW1]. b)  Project 2 is preferred because P(NPW2  > NPW1) > 0.5.
c)  Both A and B are true.
d)  Neither A nor B is true.

3) Process A has fixed costs of $10,000 and unit costs of $4.50 each, process B has fixed costs of $25,000 and unit costs of $1.50 each.  At what production would the two processes have the same total costs?
a)  50 units
b)  500 units
c)  5,000 units
d)  50,000 units

4) Which of the following statements about scenario analysis is true?
a)  Only two cases, the best and the worst, are analyzed
b)  Only one variable is adjusted at a time
c)  Usually at least three cases are analyzed, worst, most likely, and best
d)  Selling price is not adjusted in any scenario because it is market driven