When an Investment Bank ________ Securities,it Guarantees a Price for a Corporation's

question 136

Multiple Choice

When an investment bank ________ securities,it guarantees a price for a corporation's securities and then sells them to the public.

• A)underwrites
• B)undertakes
• C)overwrites
• D)overtakes

Know the requirements for a binding contract, including mutual assent, consideration, legality of object, and contractual capacity.

Identify the governing laws for different types of contracts (goods, services, employment).

Understand the principles of enforceability for noncontractual promises based on justifiable reliance.

Recognize when a contract is voidable due to material misrepresentation.

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Definitions:

Puffing

Puffing refers to the exaggerated or hyperbolic comments or opinions made by salespeople about a product or service, not considered legally binding promises.

Written Express Warranty

A clearly stated promise by a seller regarding the condition, performance, or quality of a product, documented in a written format.

Warranty Disclosure

The act of revealing or making known any warranties, guarantees, or conditions related to a product or service.

Activate Warranty

The process of making a warranty valid or enforceable, often by registering a product or service with the manufacturer or provider.