Use the Fact Situation in Q30 to Answer the Related

question 60

Multiple Choice

Use the fact situation in Q30 to answer the related question that follows. Assume that before Mary signs the guarantee,she sees a lawyer for independent legal advice.Assume also that just before she signs the guarantee,the lawyer asks her if she is signing the guarantee freely and without threat of harm,duress,or undue influence and that Mary replies,"Yes,I am signing it freely and without threat of harm,duress,or undue influence." In these circumstances,if Mary changes her mind and does not want to be bound by the guarantee,

• A)she will succeed because the bank cannot rely on the independent legal advice she received.
• B)she will succeed because the guarantee is void for duress.
• C)she will not succeed because of the doctrine of caveat emptor.
• D)she will succeed because the guarantee is voidable for duress.
• E)she will not succeed because the bank can rely on the independent legal advice she received.

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and make key decisions regarding the company's management and policy.

Dividend Yield

Dividend yield is a financial metric indicating the annual dividend payout of a company as a percentage of its share price.

Earnings per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.