The Conversion Privilege Offered by Many Mutual Funds Enables Investors

question 54

True/False

The conversion privilege offered by many mutual funds enables investors, within three days, to convert their shares back to cash in an amount equal to the original cost of the investment.

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Definitions:

Unenforceable

A term applied to a contract that, because of a law, cannot be enforced by the courts.

Substantive Unconscionability

Unconscionability that derives from one-sided, unjust, or overly harsh substance in a contract.

Maximum Interest Rate

The highest rate of interest that can be charged on loans or credit, often regulated by law to prevent usury.

Business Tort

A wrongful act, other than a breach of contract, that results in injury or damage to another's business interests.