Under Which of the Following Scenarios Would a Third Person

question 33

Multiple Choice

Under which of the following scenarios would a third person be able to successfully sue a corporate manager if the manger's advice to the corporation causes loss to the third person?

• A) The manager's advice has resulted in the corporation's successful underselling of the third person's product.
• B) The manager's advice has resulted in the corporation's breach of a contract with the third person under which the corporation was losing a substantial sum of money.
• C) The manager's advice has resulted in the corporation's refusal to deal with the third person because the third person has not maintained the standards and quotas set by the corporation.
• D) none of the above.

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Definitions:

Fraudulent Acts

Fraudulent acts involve intentional deception or misrepresentation made by a person or entity with the intent of gaining some unfair or dishonest advantage.

Over the Counter

Describes securities trading through a dealer network rather than on a centralized exchange, often for stocks that do not meet the requirements to be listed on major exchanges.

1934 Act

Refers to the Securities Exchange Act of 1934, which governs the trading of securities in the U.S., including the establishment of the SEC.

Registration Under

The process of officially recording or enlisting something or someone under certain conditions or regulations, often related to securities laws.