Under the Due Diligence Defense to a Section 11 Action

question 36

Multiple Choice

Under the due diligence defense to a Section 11 action under the Securities Act of 1933,which of the following is true?

• A) Only the issuer can assert a due diligence defense.
• B) Any defendant can assert a due diligence defense.
• C) Any defendant except the issuer can assert a due diligence defense.
• D) The due diligence defense must be asserted together by all defendants,or not at all.
• E) Existence of the defense will replace criminal liability with a lesser civil liability.

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Definitions:

Economic Freedom

The fundamental right of every human to control his or her own labor and property, including the freedom to trade and to partake in markets.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and can help people understand the difference between right and wrong.

American Politics

American politics encompasses the political structure, processes, and interactions within the United States, including the functioning of its government, political parties, policies, and the involvement of its citizens.