If an Agent at His Principal's Direction Fixes Prices with the Principal's

question 13

Multiple Choice

If an agent at his principal's direction fixes prices with the principal's competitors:

• A) only the agent is criminally liable.
• B) only the principal is criminally liable.
• C) both the principal and agent are criminally liable.
• D) any liability would be civil only.

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Definitions:

Fraudulent Statements

False or misleading statements made intentionally to deceive, which can result in legal action for fraud.

Audit Liability

The legal responsibility auditors face for failing to detect or report inaccuracies in financial statements.

Securities Exchange Act

A U.S. federal law enacted in 1934 to govern the trading of securities, such as stocks and bonds, in the secondary market, aiming to promote transparency, fairness, and integrity in the marketplaces.

SEC Rule 10b-5

A regulation by the Securities and Exchange Commission that prohibits fraud and misrepresentation in securities trading.