Under the Law of Restitution, a Remedy for Misrepresentation Is

question 4

True/False

Under the law of restitution, a remedy for misrepresentation is rescission (avoidance) of the contract by the deceived party, though when appropriate, the courts also will require restitution.

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Definitions:

Target Firm's Shareholders

Individuals or entities that own shares in a company that is the subject of a merger or acquisition.

Purchase Method

An accounting method for business combinations where the acquiring company records the assets and liabilities of the acquired company at their fair market values.

Pooling Method

An accounting technique used in mergers and acquisitions where the assets and liabilities of the merging companies are combined using their book values, rather than being re-valued or adjusted.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.