Which of the Following Is True Regarding Any Affirmative Defenses

question 61

Multiple Choice

Which of the following is true regarding any affirmative defenses available under Section 20a) of the Securities Exchange Act?

• A)Comparative negligence is an affirmative defense.
• B)Comparative negligence and contributory negligence are affirmative defenses,and also an affirmative defense exists when the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the underlying violation or cause of action.
• C)An affirmative defense exists when the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the underlying violation or cause of action.
• D)There are no affirmative defenses available.
• E)Contributory negligence is an affirmative defense.

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Definitions:

Undue Influence

A legal term that describes a situation where an individual is able to persuade another's decisions due to the relationship between the two parties, often resulting in unfair outcomes.

Confidential Relationship

A relationship where one party has confidence in and relies upon another for secrecy or protection of information.

Dominant Position

Refers to a company or entity's substantial control over a market, significantly over its competitors.

Undue Influence

An improper or unfair persuasion that compels someone to act against their will, often impacting legal decisions and contracts.