Which of the Following Was the Result on Appeal in Richard

question 67

Multiple Choice

Which of the following was the result on appeal in Richard D.Kennedy and Sally S.Kennedy v.Chase Manhattan Bank,U.S.A.,N.A.,the case in the textbook involving whether a bank may obtain an individual's credit report to determine whether to extend credit after providing a prequalified offer for a credit card?

• A)The court ruled in favor of the bank on the basis that the prequalification offer revealed that credit could be denied if,after the application was returned,the bank obtained credit reports and determined that the complainants did not meet the bank's standards.
• B)The court ruled in favor of the bank on the basis that banks may obtain credit reports on any loan applicant.
• C)The court ruled in favor of the bank on the basis that while banks may not obtain credit reports on each and every loan applicant regardless of circumstances,because of the risk involved,banks may obtain credit reports on any applicant for a credit card.
• D)The court ruled in favor of the plaintiff because the bank had extended an unqualified offer of a preapproved credit card and had no right to do a credit check.
• E)The court ruled in favor of the plaintiff because although the bank had a right to conduct a credit check,it had no right to deny the credit card because it was preapproved.

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Definitions:

Common Dividend Payable

Liabilities on a company's balance sheet representing the amount of dividends that are owed to shareholders on common stock.

Shares Outstanding

Shares outstanding refer to all shares currently owned by shareholders, including restricted shares owned by company insiders and share blocks held by institutional investors.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits via dividends.

Paid-In Capital

Funds that shareholders contribute to a company in exchange for equity, beyond the par value of the shares.