Which of the Following Sets Forth the Common Law Rule

question 5

Multiple Choice

Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer?

• A) The Matching Rule
• B) The Complete Rule
• C) The Mirror Image Rule
• D) The Exact Rule
• E) The Parallel Rule

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Definitions:

Preemptive Rights

A stockholder’s right to maintain her proportionate ownership in a corporation. The stockholder has the right to buy a share of any newly issued stock that is proportionate to her fractional ownership of the company before the new issue. The right is not a matter of law but must be written into the corporation’s bylaws.

Proportionate Ownership

Ownership shares in a company or asset divided among investors in proportion to their investment.

Efficient Markets

A financial market hypothesis suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher-than-average returns.

Informed Markets

Markets where all participants have access to all relevant information, leading to more efficient price determination.