Which of the Following Was the Result on Appeal Before

question 30

Multiple Choice

Which of the following was the result on appeal before the U.S.Supreme Court in Matrixx Initiatives v.Siracusano,the securities case in the text involving the issue of whether an issuer must disclose known information about possible side effects of a drug that could affect the drug's stock price even though no proven statistical link exists between use of the drug and the adverse effect?

• A) That a bright-line test would be applied requiring at least one civil judgment in favor of a plaintiff before a defendant would be required to disclose allegations of a link between a drug and an adverse effect and that the defendants were entitled to dismissal of the case because no showing of a civil judgment had been introduced.
• B) That no statistical link between the use of the drug and adverse effects was required but that the defendants were entitled to dismissal of the case because the plaintiffs did not personally suffer adverse health effects from the drug.
• C) That the defendants were entitled to dismissal of the case because the plaintiffs could not prove a statistical link between use of the drug and adverse effects.
• D) That the "total mix of information" test applied in regard to the issue of materiality, that statistical proof was unnecessary, and that sufficient evidence existed for the plaintiffs to proceed to trial.

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Definitions:

Decentralization

The distribution of administrative powers or functions across various levels and departments within an organization, promoting autonomy and flexibility.

Wider Spans Of Control

A management principle whereby a manager supervises a larger number of subordinates, which can lead to more autonomy but also requires more efficient communication.

Effective Delegation

The skill of assigning tasks and authority to subordinates in a way that maximizes efficiency, development, and empowerment.

Empowerment Of Workers

The practice of giving employees more autonomy, authority, and control over their work and decision-making processes, fostering job satisfaction and productivity.