Which of the following would never be liable for securities fraud in the preparation of materials sent to investors:
a. directors of the company b. accountants
c. lawyers who helped prepare disclosure materials d. all of the other specific choices could be liable
e. none of the other specific choices could ever be liable
Question 2
In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that:
a. the district court was correct in its ruling that AFLAC was not bound by the contract because Galgano did not have apparent authority
b. the district court was correct in its ruling that AFLAC was bound by the contract because Galgano had apparent authority
c. the district court was incorrect in its ruling that AFLAC was bound by the contract because Galgano did not, in fact, have apparent authority
d. the district court was incorrect in its ruling that AFLAC was not bound by the contract because Galgano had express authority
e. none of the other choices are correct
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