Which of the Following Is an Incorrect Statement

question 15

Multiple Choice

Which of the following is an incorrect statement?

• A) a corporation may file suit in its own name without the principals filing suit
• B) a corporation may form a contract in its own name without the principals guaranteeing the contract
• C) a corporation can be sued without the principals being sued
• D) a corporation may incur obligations separate from those of its principals

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Definitions:

Consumer Protection Act

A legal provision designed to protect the rights of consumers from unfair trade practices, defective goods, and misleading advertisements.

Treble Damages

A legal provision allowing a court to triple the amount of damages to be awarded, typically used as a punishment in certain lawsuits.

Antitrust Violations

Actions conducted by businesses that result in unfair competition, mainly through practices that aim to establish or maintain monopolies or stifle competition.

Criminal Charges

Legal allegations made by the government claiming an individual or entity has committed a crime.