If a Judge Determines That a Business Violated the Law

question 27

Multiple Choice

If a judge determines that a business violated the law and the FTC issues a cease and desist order, does the business have any recourse against the cease and desist order?

• A) No, a judge making the ruling makes it final.
• B) No, the party cannot appeal any decision of the judge because Congress gave all the power to the FTC to uphold findings.
• C) Yes, the party can appeal the decision to the five commissioners of the FTC
• D) Yes, because a cease and desist order is not permanent and the business can continue the advertising.
• E) No, the business only has the right to negotiate a consent order with the FTC.

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Definitions:

Shares Issued

The total number of shares that have been allocated to shareholders and company officers.

Paid-In Capital

This refers to the total amount of cash and other assets received from shareholders in exchange for stock.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate issues and receive dividends.

Treasury Stock

Refers to shares that were issued and later repurchased by the corporation, reducing the amount of outstanding stock on the open market.