Linda, a currency trader for United Traders, has specific instruction s not to t
ID: 425377 • Letter: L
Question
Linda, a currency trader for United Traders, has specific instruction s not to take a position on any currency in excess of $1 million. Linda sees what she believes to be a sure thing and takes a $20 million position. Unfortunately, the t bad and costs United $60 million. Does Linda have any liability to United? o Yes, she violated specific instructions and is liable for the loss. O No, this is normal market practice O Yes, she engaged in insider trading O No, she is protected by the business judgment rule. ansaction goes QUESTION 14 Small State has a limited customer base north and south of the interstate highway. Company A and Company Z agree that A will sell north of the interstate highway and Z will sell south of the interstate. This is a violation of the Antitrust Act O per se O rule-of-reason o joint federal and state O minor QUESTION 15 An exclusive control of a market by a business enterprise is a O monopoly O common enterprise trust , confederationExplanation / Answer
13) Linda, a currency trader for United Traders, has specific instructions not to take a position on any currency in excess of $1 million. Linda sees what she believes to be a sure thing and takes a $20 million position. Unfortunately, the transaction goes bad and costs United $60 million. Does Linda have any liability to United?
Answer: (A) Yes, she violated specific instructions and is liable for the loss.
Explanation: Inspite of being given the specific instructions of not taking a position on an currency in excess of $1 million, Linda took a $20 million position on a currency which costed $60 million to United traders. She clearly violated the company norms and instructions and therefore, is liable for the loss under the actual authority rule. Under this rule, if a manager exceeds his or her authority and the organization is harmed in the process, the manager will be held liable.
14) Small State has a limited customer base north and south of the interstate highway. Company A and Company Z agree that A will sell north of the interstate highway and Z will sell south of the interstate. This is a _____ violation of the Sherman Antitrust Act.
Answer: (A) Per se
Explanation: According to the Per se violation of the Sherman Antitrust Act, per se requires no further inquiry on the actual effect of the practice on the market. These practices are so contrary to the antitrust policy that the harm is presumed and the practice is prohibited.
15) An exclusive control of a market by a business enterprise is a:
Answer: (A) Monopoly
Explanation: When a single firm has an exclusive control on a given market, such control is termed as a monopoly situation.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.