Fact Pattern 11-1

question 19

Multiple Choice

Fact Pattern 11-1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.


-Refer to Fact Pattern 11-1.With respect to Mutual's duties,Neil's performance most likely

• A)discharges Mutual from the contract.
• B)has no effect on Mutual's performance.
• C)increases Mutual's duties under the contract.
• D)suspends Mutual's duty to perform.

---

Definitions:

Securities Exchange Act

A U.S. law governing the trading of securities (stocks, bonds, and securities futures) to protect investors against manipulation.

Insider Trading

The unauthorized use of secret information for making profitable trades on the stock market to benefit oneself.

Exemption From Registration

A situation where a party is relieved from the requirement to register information or activities with a governmental or regulatory authority.

Components Assembly Corporation

A business specializing in the process of assembling parts to create finished products, often in the manufacturing sector.