Akira Purchased a Certain Number of Securities and Incurred Losses

question 17

Multiple Choice

Akira purchased a certain number of securities and incurred losses due to a decline in the price of securities in the market. She held her accountant, Jason, liable for her entire loss. Given this information, which of the following statements is true?

• A) Jason can be held liable because he did not demonstrate that the purchaser was aware of the omissions in the registration statement before buying the securities.
• B) Akira can hold Jason liable for her losses because an accountant is liable to any purchaser of securities issued pursuant to a defective registration statement.
• C) Jason cannot be held liable because the losses were totally unrelated to the accountant's negligence.
• D) Akira can hold Jason liable for her losses because he did not prove that he made a reasonable investigation and reasonably believed that the certified financial statements were accurate.

Understand the fundamentals of negotiable instruments as defined by the Uniform Commercial Code (UCC).

Identify the various types of negotiable instruments and their characteristics.

Recognize the requirements and conditions for the negotiability of instruments.

Comprehend the roles and responsibilities of parties involved in the negotiation and endorsement of negotiable instruments.

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Definitions:

Smelting Company

A business that specializes in extracting pure metal from ore through heating and melting processes.

Service Of Process

The delivery of the complaint and summons to a defendant.

Due Process

A legal principle that ensures fair treatment through the normal judicial system, especially as a citizen's entitlement.

Social Media

Platforms that enable users to create and share content or to participate in social networking.