Contract Devices Explicitly Designed to Thwart a Hostile Takeover Attempt

question 17

Multiple Choice

Contract devices explicitly designed to thwart a hostile takeover attempt are called poison pills or shark repellents.Examples include all of the following EXCEPT:

• A)a shareholder rights plan that can be issued as dividends at management's discretion.
• B)an event-triggered put provision in one of the firm's debt contracts.
• C)a provision in the firm's charter that gives incumbent management their positions for life.

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Definitions:

Implied Warranty

a legal assumption that a product or service sold will meet certain quality and functionality standards even if not explicitly stated.

Merchantability

A guarantee that a product sold meets certain quality standards and is fit for the ordinary purposes for which such goods are used.

UCC

The Uniform Commercial Code represents a collection of statutes offering legal guidelines and regulations for commercial or business activities and transactions within the United States.

CISG

The treaty known as the United Nations Convention on Contracts for the International Sale of Goods sets a standardized law for international sales transactions.