Which of the Following Statements Is True About Foreign Agency

question 37

Multiple Choice

Which of the following statements is true about foreign agency laws?

• A)In Japan, agents can act with implied authority.
• B)In Japan, agents must disclose whom they are representing.
• C)In the European Union, most agency agreements lapse after one year.
• D)In the European Union, agents are not required to communicate all items in negotiations.

---

Definitions:

Securities Exchange Act

A U.S. law enacted in 1934, which governs the trading of securities, such as stocks and bonds, to protect investors and maintain fair and efficient markets.

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.