Issues Involved in the Diversification of Product Offerings Include the Following

question 158

Multiple Choice

Issues involved in the diversification of product offerings include the following EXCEPT

• A)Safety and soundness issues
• B)Economy of scale and scope issues.
• C)Conflict of interest issues.
• D)Deposit insurance and regulatory oversight issues.
• E)Pricing issues.

Understand the concept of scienter and its importance in establishing fraud.

Differentiate between mistakes in contract terms and how they affect contract enforceability.

Recognize the elements required to establish a case of fraud, including reliance and misrepresentation.

Understand the role of physical compulsion and improper threats as forms of duress in contract law.

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Definitions:

Contract Law

The area of law that governs the making, enforcement, and interpretation of agreements between parties.

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Credit Instrument

A document that represents a legal agreement involving any kind of financial credit or loan arrangement, including promissory notes, bonds, and letters of credit.

Payee

A person to whom a payment is made or is made payable.