Is There a Private Right of Action Under Section 10b-5

question 54

Multiple Choice

Is there a private right of action under Section 10b-5 of the Securities Exchange Act of 1934?

• A) Yes; the Act expressly provides one.
• B) No; there is not such a right under the Act.
• C) There is a private cause of action,but only if consent to sue is received from the SEC.
• D) There is no express private right of action,but courts have implied one.

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Definitions:

Partial Summary Judgment

A legal decision made by a court on certain aspects of a case without a full trial, resolving some but not all of the issues.

Restraint of Trade

Restraint of trade refers to any activity or agreement that restricts competition or the free operation of the market.

Geographical Restriction

Limitations placed on where a business can operate or where a person can live or work, often found in contracts or legal agreements.

Severable

Describes contract clauses that can be legally separated or isolated from the rest of the contract, allowing for parts of the contract to be invalidated or enforced independently.