The Holders of Xenron Corporation's Bond with a Face Value

question 58

Multiple Choice

The holders of Xenron Corporation's bond with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $22.00. What is the conversion premium?

• A) 0.00%
• B) 29.86%
• C) 59.01%
• D) 106.61%
• E) None of these.

Understand the role of negligence in product liability and the requirement of cause in fact and proximate cause.

Recognize the significance of quality control and the duty to warn in preventing product liability.

Acknowledge the impact of strict liability on promoting product safety.

Understand the criteria for defining a product as defective and the respective liabilities for manufacturing, design, and warning defects.

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Definitions:

Original Duty

The fundamental obligation or responsibility that a party has in a contractual or legal relationship.

Enforce

To compel obedience or compliance through legal or authoritative means; to ensure the fulfillment of a requirement.

Give Consideration

In contract law, the act of offering something of value, required by both parties for a contract to be legally binding.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise even when a legal contract does not exist.