Which of the Following Was the Ruling by a Majority

question 57

Multiple Choice

Which of the following was the ruling by a majority of the court in Stoneridge Inv. Partners, LLC v. Scientific-Atlanta, Inc., the case in the text in which the U.S. Supreme Court addressed the issue of the liability of bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did?

• A) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did can be held liable to the same extent as the primary wrongdoers.
• B) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did could be held liable to shareholders only if the primary wrongdoers were insolvent and also that the secondary wrongdoers could be punished by criminal prosecution and enforcement actions by the SEC.
• C) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did could be held liable to shareholders only if the primary wrongdoers were insolvent and also that the secondary wrongdoers could not be punished by criminal prosecution and enforcement actions by the SEC.
• D) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did cannot be sued by shareholders and also cannot be held criminally liable or subject to enforcement actions by the SEC.
• E) That bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did cannot be sued by shareholders but can be subject to criminal prosecutions and enforcement actions by the SEC.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Market Equilibrium

A situation where the quantity demanded of a good or service equals the quantity supplied, leading to a stable price.