One Problem of a More Principles-Based System That Was Pointed

question 49

Multiple Choice

One problem of a more principles-based system that was pointed out in an SEC study is that they:

• A) Tend to be rules-based more than objectives-oriented standards
• B) May present enforcement problems
• C) Use bright-line tests
• D) All of these

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Definitions:

Anticipatory Breach

Occurs when one party to an agreement makes it clear, before the performance is due, that they do not intend to fulfill their contractual obligations.

Compensatory Damages

Financial compensation awarded to a plaintiff to cover actual losses and expenses resulting from another party's negligence or wrongful actions.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States.

Exculpatory Condition

A provision in a contract or agreement that frees one party from legal liability for any harm or damage caused.