Federal/State Regulations and Legal Powers – Business Law Study Guide 2017

An LLC that was organized in Alabama and is operating in Texas with no operations outside the United States is considered a ___ in Texas

 Foreign limited liability company

Explanation: In the context of state law, a foreign company is one that operates out of another state. You can read more about the LLC nomenclature here.

The ___ is an international organization created by a multilateral treaty in 1945 to promote social and economic cooperation among nations and to protect human rights

 United Nations

Explanation: The UN was formed in 1945 and uses these statements in their official charter.

Halfren, a county in the state of Halizona, is extremely earthquake-prone.

A committee set up by the governor to study the effects of past earthquakes found that a new technique of using steel reinforcements in building columns would help reduce overall damages. The findings were put to a debate at the local town hall, where it was accepted by a majority of the residents of Halfren. The state government then passed a law making it mandatory to use the new steel-reinforced columns while constructing new buildings in Halfren. Which function of the law did the state government of Halizona exhibit in this case?

 Facilitating orderly change

Explanation: In this scenario, businesses are not completely willing to make the change to new building standards, therefore the government is required to facilitate the change in a fair and structured way.

What is the difference between statutes and Ordinances?

 Statutes are enacted by federal administrative agencies, while ordinances are enacted by state administrative agencies.

Explanations: Statues are enacted by publicly elected legislators at the federal and state level, such as congress, or the state senate. Ordinances are set by local governments to handle local issues, such as an ordinance close a freeway after a crash.

Jones & Hilton Co. owned a large cold storage warehouse where they stored and processed meat and meat products.

An insider revealed to the media that the cold storage failed to meet numerous safety standards, encountered repeated rodent attacks, and sold potentially harmful and infected meat in the market without notifying authorities. The has the authority to conduct inspections of the cold storage warehouse and initiate legal proceedings against the owners for endangering the health of consumers.

 U.S Department of Agriculture (USDA)

Explanation: According to federal statute: “The USDA Federal Safety and Inspection Service (FSIS) is responsible for all meat and poultry regulations for inspected amenable livestock and poultry species.” The question does not specify the meat product, but one can assume it falls within the purview of the USDA.

According to the provisions set forth by the Sarbanes-Oxley Act, the may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

 Securities and Exchange Commission

Explanation: The SEC can ban officers from serving on the board of public companies, among many other powers created by the Sarbanes-Oxley Act.

 
  • Student: Forest Bayes
  • Textbook: Various Law Textbooks
  • Course: Business Law
 

Browse More Business Law Resources

Law is one of the most memory-intensive aspects of business school. Learn the most important concepts with our full 2016-17 study guide:

  1. Part 1 - Civil Liability and Contract Law
  2. Part 2 - Employee/Employer Relations and Civil Rights
  3. Part 3 - Federal/State Regulations and Legal Powers
  4. Part 4 - Issues Concerning Liability

 

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