WCC Final Exam 35 Questions with Verified Answers
Know about the Security and Exchange Commission and how it got started -
CORRECT ANSWER Was established in 1934 as one governmental response to the
massive stock manipulations and frauds that contributed to the 1929 stock
market crash. Controls on the issuing and trading of securities were virtually
nonexistent, allowing for any number of frauds and other schemes. Further, the
unreported concentration of controlling stock interests in a very few hands led to
the abuses of power that the free exchange of stock supposedly eliminated.To
bring order out of chaos, Congress passed three major acts creating the Securities
and Exchange Commission,SEC, and defining its responsibilities. The Securities Act
of 1933 required public corporations to register their stock sales and distribution
and make regular financial disclosures. The Securities Exchange Act of 1934
created theSEC to regulate exchanges, brokers, and over-the-counter markets, as
well as to monitor the required financial disclosures. The 1935 Public Utility
Holding Company Act did away with holding companies more than twice removed
from the utilities whose stocks they held. This "death sentence" ended the
practice of using holding companies to obscure the intertwined ownership of
public utility companies. Further, the act authorized the SEC to break up any
unnecessarily large utility combinations into smaller, geographically based
companies and to set up federal commissions to regulate utility rates and
financial practices.
Know about the American Bar Associations stand on legal ethics - CORRECT
ANSWER In the case of the legal profession, until well into the 20th century,
professional discipline was principally a matter informal peer control. Although
the ABA promulgated around the turn of the century ethical rules that have been
subjected to much revision and refinement over the years, the ABA seems to have
been much less concerned with their actual enforcement. Furthermore, clients
have either lacked the necessary knowledge to institute formal complaints against
their attorneys or have been beneficiaries of their misconduct. Complaints made
against lawyers most typically involve false advertisement, fee abuse, neglect,
misappropriation, and lack of communication.
, Know about the US Marshal's Service. (when they were formed, why and what do
they do) - CORRECT ANSWER The United States Marshals Service (USMS) is a
federal law enforcement agency within the U.S. Department of Justice (see 28
U.S.C. § 561). It is the oldest American federal law enforcement agency,[4] which
was created by the Judiciary Act of 1789 during the presidency of George
Washington. The Marshals Service is attached to the Judicial branch of
government, and is the enforcement arm of the federal courts. It is the primary
agency for fugitive operations, responsible for prisoner transport, the protection
of officers of the court, and for the effective operation of the judiciary. The
Marshals Service operates the Witness Protection Program, and serves federal
level arrest warrants.[5] The office of United States Marshal was created by the
First Congress. President George Washington signed the Judiciary Act into law on
September 24, 1789.[6] The Act provided that the United States Marshal's
primary function was to execute all lawful warrants issued to him under the
authority of the United States. The law defined marshals as officers of the courts
charged with assisting federal courts in their law-enforcement functions:
And be it further enacted, That a marshal shall be appointed in and for each
district for a term of four years, but shall be removable from office at pleasure,
whose duty it shall be to attend the district and circuit courts when sitting therein,
and also the Supreme Court in the district in which that court shall sit. And to
execute throughout the district, all lawful precepts directed to him, and issued
under the authority of the United States, and he shall have the power to
command
all necessary assistance in the execution of his duty, and to appoint as shall be
occasion, one or more deputies.[7]
The critical Supreme Court decision, affirming the legal authority of the federal
marshals, was made in I
Deregulation of the Market and what President was responsible(Reagan) -
CORRECT ANSWER In 1980, Ronald Reagan ran for president on a platform that
was that was highly critical of a bloated government, and his election was a major
factor in the deregulatory era of the 1980's. During this decade, regulation was
scaled back or severely constrained in many areas, including consumer protection
and antitrust, especially when politically dominated agencies were able to act on
a discretionary basis. The 1980's is now quite widely viewed as a period during
which enormous damage to the environment, the workplace, and financial
institutions occurred, at least in good part due to excessive deregulation.
