Business and Corporate Law Flashcards
7 cards from real ACCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business and Corporate Law flashcards as text
Under the UCC, what is the 'battle of the forms' and how is it typically resolved?
Answer: Additional or different terms in an acceptance that conflict with the offer, resolved by UCC Section 2-207
UCC Section 2-207 addresses contracts formed when acceptance contains different or additional terms, generally allowing contracts to form while treating conflicting terms as knocked out.
What is the primary legal obligation imposed by the Sarbanes-Oxley Act (SOX) on public company executives?
Answer: CEOs and CFOs must personally certify the accuracy of financial statements
SOX Section 302 requires CEOs and CFOs to personally certify that financial statements are accurate and complete, creating personal liability for false certifications.
In corporate law, what is a 'poison pill' defense?
Answer: A shareholder rights plan allowing existing shareholders to buy shares at a discount to dilute a hostile acquirer
A poison pill is a shareholder rights plan that allows existing shareholders to purchase additional shares at a discounted price if a hostile bidder acquires a trigger percentage, diluting the acquirer.
Which legal doctrine holds employers liable for tortious acts committed by employees acting within the scope of their employment?
Answer: Respondeat superior
Respondeat superior ('let the master answer') imposes liability on employers for employee torts committed within the scope of employment.
Under contract law, what is the effect of the 'parol evidence rule'?
Answer: Extrinsic evidence cannot be used to contradict a final written contract
The parol evidence rule bars the introduction of prior or contemporaneous oral agreements to contradict or vary the terms of a final written contract.
What is the key feature of a 'nonprofit corporation' that distinguishes it from a for-profit corporation?
Answer: Profits cannot be distributed to members or directors but must be used for the organization's stated purpose
The non-distribution constraint prohibits nonprofit corporations from distributing net earnings to members, directors, or officers; all profits must further the organization's exempt purpose.
In US antitrust law, which statute prohibits contracts, combinations, and conspiracies in restraint of trade?
Answer: The Sherman Antitrust Act
Section 1 of the Sherman Antitrust Act prohibits contracts, combinations, or conspiracies that unreasonably restrain trade or commerce.