Which of the Following Was the Result on Appeal in the Case

question 48

Multiple Choice

Which of the following was the result on appeal in the case of Stephen Labatt Porter v.Black Warrior Farms L.L.C.,the case in the text involving whether a gift was made when prior to going on a cruise,a mother sent money to her son for investment,said in a letter to him that he should keep the money if anything happened to her,returned from the cruise,and died at a later date?

• A) The court ruled that a gift causa mortis was made because she died before requesting the return of the money and that the money therefore belonged to the son.
• B) The court ruled that a gift causa mortis was made because the mother intended that the son keep the money if anything happened to her before or after the trip and that the money therefore belonged to the son.
• C) The court ruled that a valid inter vivos gift was made because the mother never requested the return of the money and that the money therefore belonged to the son.
• D) The court ruled than a valid inter vivos gift was made because the mother meant for the son to invest the money for her, retaining it if she died, and that the money therefore belonged to the son.
• E) The court ruled that neither a valid causa mortis nor a valid inter vivos gift was made and that the funds were properly deducted from any distribution to the son or his heirs.

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Definitions:

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through the process of diversification, as it's not correlated to market risk.

Employees

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The potential for loss inherent in the entire market or an entire market segment, also known as market risk or non-diversifiable risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk level compared to the market average.