Which of the Following Statements Is True of Illegal Sales

question 4

Multiple Choice

Which of the following statements is true of illegal sales?

• A)If a sale is divisible with a legal and illegal part, then neither part is enforceable by the law.
• B)An indivisible sale with an illegal part makes the entire sale illegal.
• C)If a sale involves several separate items but it is a lump-sum sale, then the sale is considered divisible.
• D)If a party is completely innocent and has entered into an illegal sale, the court will not intervene to aid the party.

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Definitions:

Return

The profit or loss derived from an investment or business operation after all expenses are accounted for.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, involving various forms of assets.

Stockholders' Claim

The rights of shareholders to a company's assets, typically after debts have been paid.

Net Income

Net Income is the total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.