For All but One of the Following Reasons the Law

question 48

Multiple Choice

For all but one of the following reasons the law distinguishes a separate category of contracts requiring "utmost good faith". Which is the EXCEPTION?

• A) Disclosure affects insurance risks.
• B) A higher level of trust is placed with certain professionals.
• C) To protect purchaser in land contracts.
• D) One party may have "superior position of knowledge."
• E) Disclosure affects investment decision.

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Definitions:

Efficient

Being effective without wasting time, effort, or expense.

Prices

The amounts of money expected, required, or given in payment for something.

Efficient Markets Hypothesis

The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.