Nell Gives Big Al $50 in Return for Al's Promise

question 69

Multiple Choice

Nell gives Big Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true?

• A) Nell can get the money back from Al through litigation.
• B) Nell can get the money back and force Al to do as he promised.
• C) Legally, Nell can neither get the money back nor force Al to do as he promised.
• D) Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.

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Definitions:

Date of Declaration

The date on which a company’s board of directors announces the distribution of a dividend or other important decision.

Date of Record

The specific date set by a corporation’s board of directors after which the shareholders on record will be entitled to receive dividends or stock rights.

Cumulative Preferred Stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.

Dividends Per Share

The total dividends declared in a period divided by the number of outstanding shares of the company.