Mr Richards Instructed the Contractor Who Was Building His New

question 28

True/False

Mr. Richards instructed the contractor who was building his new house to face it with a special synthetic marble made by Messier Ltd. Messier had promised Mr. Richards in writing that the synthetic marble would last longer than the Parthenon and be in better shape. Within three months of its installation, which was properly done, the "marble" was cracking, discolouring, and crumbling at the seams. Mr. Richards can sue Messier successfully although it was not he but the contractor who made the purchase from Messier.

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Definitions:

Preliminary Prospectus

An initial document given to investors that outlines important details of a potential investment, including risks, objectives, and terms.

Red Herring

A preliminary prospectus provided to potential investors in a new issue of securities, containing information but not the final price.

Registration Statement

A legal document filed with the SEC that contains information about a company's financial operations, used for new securities issuance.

Interest Rates

The expense incurred when obtaining a loan, typically represented as a percent of the total amount lent.