Which of the Following Is True About Section 11 of the 1933

question 44

Multiple Choice

Which of the following is true about Section 11 of the 1933 Act?

• A) To prove liability, a purchaser only has to prove that the defendant is in one of the three classes of persons liable under Section 11.
• B) Directors who are not signers are not liable for false information after purchase of the security.
• C) Under Section 11, the purchaser has the burden of proving that he or she exercised due diligence.
• D) The defendant can escape liability if the purchaser did not read the registration statement.

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Definitions:

Color Constancy

The psychological feature that ensures perception of the colors of objects remains relatively constant under varying illumination conditions.

Monocular Cues

Visual information taken in by one eye that aids in depth perception and distance estimation.

Visual Perception

The ability to interpret the surrounding environment by processing information contained in visible light.

Observer Characteristics

Refers to the traits or attributes of an individual observing a situation or phenomenon, which can influence their perceptions and interpretations.