When Is a Secondary Authority Not Needed

question 31

Multiple Choice

When is a secondary authority not needed?

• A)If there is a mandatory authority case.
• B)If there is a recent decision that is on point.
• C)If the primary authority clearly provides the answer to the issue.
• D)If there is no primary authority.
• E)Answers a and c.
• F)Answers a,b,and c.

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Definitions:

Brokers' Calls

The interest rate charged by banks on loans extended to brokerage firms for the purpose of funding clients' margin accounts.

Residual Claimant

An individual or entity entitled to a share of a company's assets only after all debts and other obligations have been met in the event of liquidation.

Unlimited Liability

A legal structure wherein the business owners are personally responsible for all the debts and liabilities of the business.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised at annual meetings and proportional to the number of shares held.