A Firm Can Distribute Shares of a Subsidiary in a Transaction

question 18

Multiple Choice

A firm can distribute shares of a subsidiary in a transaction referred to as a

• A)merger.
• B)spin-off.
• C)acquisition.
• D)cash disbursement.

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Definitions:

Contributory Negligence

is a defensive legal strategy used to claim that an injured party cannot recover damages if it is demonstrated that they were also at fault, even partially, for their own injury.

Warranty of Merchantability

An implicit guarantee that a product is fit for the general purpose for which it is sold and meets a minimum quality standard.

Section 402A

A provision in the Restatement (Second) of Torts that establishes the manufacturer's liability for harm caused by defective products.

Restatement of the Law of Torts

A collection of common law principles regarding civil wrongs, excluding contract disputes, intended for clarity and adaptation by courts.