Leila Enters into a Contract with Metro Rides to Work

question 71

Multiple Choice

Leila enters into a contract with Metro Rides to work as a driver. Under the plain meaning rule, the court cannot consider any evidence not contained in the document if

• A) the parties' intent cannot be determined from the contract's language.
• B) the contract lacks a provision on a disputed issue.
• C) the words in the contract appear clear.
• D) a contract term can be interpreted in more than one way.

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Definitions:

Proxy Fight

A battle for control of a company where opposing sides attempt to win the votes of shareholders to achieve a particular outcome during the company's annual meeting.

Takeover Candidate

A company that appears attractive for acquisition by another firm due to its assets, financial performance, or market position.

Capital Structure

The way a corporation finances its assets through a combination of debt, equity, and hybrid securities.

Debt and Equity

Components of a company's capital structure, with debt representing borrowed money to be paid back and equity representing ownership interest.