Elvis Makes an Offer to Fred, but Before Fred Can

question 52

Multiple Choice

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:

• A) automatically terminates the offer.
• B) has no effect on the offer.
• C) acts as a condition on the offer.
• D) acts as a rejection of the offer by the offeree.

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Definitions:

Affirmative Defense

A defendant’s response to a plaintiff’s claim in which the defendant attacks the plaintiff’s legal right to bring the action rather than attacking the fact of the claim or making excuses for unlawful behavior. Common

GAAS

Generally Accepted Auditing Standards, which are guidelines that auditors follow when conducting audits on companies' finances.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards for financial reporting.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at improving corporate governance and accountability through stricter auditing and financial regulations.