ASU - Koretz - LES 305 - Exam 2 |
150+ Questions & Answers | Grade A
| 100% Correct (Verified Solutions)
2026/2027
This ASU LES 305 Exam 2 prep pack by Koretz provides
over 150+ questions and verified answers for the Legal, Ethical, and
Regulatory Issues in Business course. It focuses on Exam 2 topics,
including federal regulation of securities, corporate governance, insider
trading, and related business law, featuring Q&A formats and key terms
to help ensure a high grade.
Key Exam 2 Topics & Content Examples:
Securities Regulation: Detailed coverage of the Howey Test, 1934
Act, 1933 Act, and Tender Offers.
Insider Trading & Liability: Concepts such as Section 16, Short-
Swing Profits, and material non-public information.
Business Law Principles: Coverage of corporate legal requirements,
regulatory compliance, and relevant Case Law.
Format: The study guide is tailored as a test bank with, often graded
A+, aimed at helping students prepare efficiently with practical
scenarios.
This study material is typically updated for the current semester and
focus on the material covered by Professor Koretz at Arizona State
University.
Quiz_________________?
1
, No branch of government can exercise the authority of another branch. Also,
each branch has some power to limit the actions of the other two branches; this
scheme creates a system of checks and balances. -
Answer
TRUE.
Quiz_________________?
You play football for the Tempe Moons, last year's winners of the Super Bowl.
The Tempe Moons are a member of the National Football League (NFL), a private
organization. One requirement is that all NFL players, coaches, and other
members of the team stand and act in a dignified manner while the national
anthem is played before the game begins. You decide not to stand due to your
religion. Other players are members of your religion and they stand. The NFL
suspends you from further play due to your failure to stand. You want your job
back. -
Answer
No constitutional rights have been violated since the NFL is a private
organization.*
Quiz_________________?
Under the Commerce Clause, the federal government has the right to regulate
any area of business -
Answer
that affects interstate commerce.*
2
, Quiz_________________?
The United States Supreme Court determined that the Violence Against
Women's Act exceeded Congressional authority to regulate commerce under the
Commerce Clause in U.S. v. Morrison because violence is not an economic
activity. -
Answer
TRUE
Quiz_________________?
Ollie's Barbeque is a family-owned restaurant in Birmingham, Alabama with a
seating capacity of 220 customers. It is located on a state highway which is 11
blocks from an interstate highway. A sign in the restaurant provides that take-out
service only is available for African Americans. Congress passed the Civil Rights
Act in 1964, which prohibited this type of discrimination. Ollie's purchases about
$150,000 annually from a local restaurant supplier and 46% that amount is from
out-of-state distributors. Will the Commerce Clause permit the application of the
Civil Rights Act to Ollie's? -
Answer
Yes. Ollie's purchases a significant quantity of goods that originate out of state, so
the discriminatory conduct impacts interstate commerce.
Quiz_________________?
What authority would the state of Arizona claim for passing a mandatory seat belt
law requiring anyone traveling in Arizona to put on his or her seat belt? -
Answer
Police Power
3
, Quiz_________________?
In January 2015, the Super Bowl was held at the University of Phoenix Stadium in
Glendale, Arizona. The state of Arizona could tax patrons who reside in states
other than Arizona who are visiting Arizona hotels at a rate that is higher than
the tax rate assessed against patrons who are from Arizona. -
Answer
False.
Quiz_________________?
The requirements to impose a valid state tax that is levied upon goods originating
out of state include -
Answer
a. The tax cannot discriminate against interstate commerce.
b. The tax cannot be an undue burden on interstate commerce.
c. There must be a "sufficient nexus" between the state and the business being
taxed [Examples: Does business there, holds property titles there, manufactures
there, inventory stored there]
d. The tax must be apportioned fairly.
e. All of the above are correct.*
Quiz_________________?
Pen Corporation is a Delaware corporation with offices and warehouses in
Arizona and California. Pen owns no property in North Carolina and has no
employees in North Carolina. Pen sells office supplies via catalog. North Carolina
4
150+ Questions & Answers | Grade A
| 100% Correct (Verified Solutions)
2026/2027
This ASU LES 305 Exam 2 prep pack by Koretz provides
over 150+ questions and verified answers for the Legal, Ethical, and
Regulatory Issues in Business course. It focuses on Exam 2 topics,
including federal regulation of securities, corporate governance, insider
trading, and related business law, featuring Q&A formats and key terms
to help ensure a high grade.
Key Exam 2 Topics & Content Examples:
Securities Regulation: Detailed coverage of the Howey Test, 1934
Act, 1933 Act, and Tender Offers.
Insider Trading & Liability: Concepts such as Section 16, Short-
Swing Profits, and material non-public information.
Business Law Principles: Coverage of corporate legal requirements,
regulatory compliance, and relevant Case Law.
Format: The study guide is tailored as a test bank with, often graded
A+, aimed at helping students prepare efficiently with practical
scenarios.
This study material is typically updated for the current semester and
focus on the material covered by Professor Koretz at Arizona State
University.
Quiz_________________?
1
, No branch of government can exercise the authority of another branch. Also,
each branch has some power to limit the actions of the other two branches; this
scheme creates a system of checks and balances. -
Answer
TRUE.
Quiz_________________?
You play football for the Tempe Moons, last year's winners of the Super Bowl.
The Tempe Moons are a member of the National Football League (NFL), a private
organization. One requirement is that all NFL players, coaches, and other
members of the team stand and act in a dignified manner while the national
anthem is played before the game begins. You decide not to stand due to your
religion. Other players are members of your religion and they stand. The NFL
suspends you from further play due to your failure to stand. You want your job
back. -
Answer
No constitutional rights have been violated since the NFL is a private
organization.*
Quiz_________________?
Under the Commerce Clause, the federal government has the right to regulate
any area of business -
Answer
that affects interstate commerce.*
2
, Quiz_________________?
The United States Supreme Court determined that the Violence Against
Women's Act exceeded Congressional authority to regulate commerce under the
Commerce Clause in U.S. v. Morrison because violence is not an economic
activity. -
Answer
TRUE
Quiz_________________?
Ollie's Barbeque is a family-owned restaurant in Birmingham, Alabama with a
seating capacity of 220 customers. It is located on a state highway which is 11
blocks from an interstate highway. A sign in the restaurant provides that take-out
service only is available for African Americans. Congress passed the Civil Rights
Act in 1964, which prohibited this type of discrimination. Ollie's purchases about
$150,000 annually from a local restaurant supplier and 46% that amount is from
out-of-state distributors. Will the Commerce Clause permit the application of the
Civil Rights Act to Ollie's? -
Answer
Yes. Ollie's purchases a significant quantity of goods that originate out of state, so
the discriminatory conduct impacts interstate commerce.
Quiz_________________?
What authority would the state of Arizona claim for passing a mandatory seat belt
law requiring anyone traveling in Arizona to put on his or her seat belt? -
Answer
Police Power
3
, Quiz_________________?
In January 2015, the Super Bowl was held at the University of Phoenix Stadium in
Glendale, Arizona. The state of Arizona could tax patrons who reside in states
other than Arizona who are visiting Arizona hotels at a rate that is higher than
the tax rate assessed against patrons who are from Arizona. -
Answer
False.
Quiz_________________?
The requirements to impose a valid state tax that is levied upon goods originating
out of state include -
Answer
a. The tax cannot discriminate against interstate commerce.
b. The tax cannot be an undue burden on interstate commerce.
c. There must be a "sufficient nexus" between the state and the business being
taxed [Examples: Does business there, holds property titles there, manufactures
there, inventory stored there]
d. The tax must be apportioned fairly.
e. All of the above are correct.*
Quiz_________________?
Pen Corporation is a Delaware corporation with offices and warehouses in
Arizona and California. Pen owns no property in North Carolina and has no
employees in North Carolina. Pen sells office supplies via catalog. North Carolina
4
