SOLVED

16) Which of the following was the result on appeal in the case in the text In re Century Aluminum Company Securities Litigation, the case in the text involving plaintiffs who purchased secondary-offering shares and who attempted to sue under Section 11 of the Securities Act of 1933 for misrepresentations allegedly released regarding the secondary offering? A) The court allowed the case to proceed contingent on the plaintiffs submitting proof by an expert that misrepresentations occurred. B) The court affirmed the trial court’s dismissal of the case recognizing that it is impossible as a matter of law for purchasers of aftermarket shares to have claims based on Section 11 because Section 11 does not apply to secondary-offering shares. C) The court affirmed the trial court’s dismissal of the case recognizing that it is often impossible for purchasers of aftermarket shares to have claims based on Section 11 because they normally purchase through brokers that do not acknowledge the source of the shares. D) The court affirmed the trial court’s dismissal of the case recognizing that the plaintiffs had not submitted sufficient evidence of misrepresentations. E) Finding that the plaintiffs had met all prerequisites in regard to proof, the court ruled that the case should be allowed to proceed to trial. 17) Which of the following was the result at the Supreme Court level in Matrixx Initiatives, Inc., v. Siracusano, the case in the text in which the plaintiffs brought a class action alleging that the defendant violated securities laws by failing to release reports that its product, Zicam Cold Remedy, had been found to result in a loss of smell? A) That under the “total mix” standard, the plaintiffs failed to sufficient plead materiality in regard to the alleged failure to disclose and therefore would not be allowed to proceed. B) That although under the “total mix” standard, the plaintiffs pled materiality in regard to the alleged failure to disclose, the plaintiffs failed to sufficiently plead scienter and would therefore not be allowed to proceed. C) That under the “total mix” standard, the plaintiffs sufficient pled materiality in regard to the alleged failure to disclose, that plaintiffs sufficiently pled scienter; and that plaintiffs would be allowed to proceed. D) That the plaintiffs would be allowed to proceed because they sufficiently pled scienter and also presented statistically significant evidence that Zicam caused loss of smell. E) That the plaintiffs would not be allowed to proceed because they did not present statistically significant evidence that Zicam caused loss of smell. 18) A[n] ________ action is an action against an accountant for failing to properly perform the job for which the accountant was hired. A) Malfeasance B) Malpractice C) Misjudgment D) Impropriety E) Misguidance 19) The role of accountants became a question of significant public interest after a significant amount of responsibility for the bankruptcy of ________ Corporation was placed on the firms that provided accounting services for the corporation. A) Acron B) Deltoid C) Enron D) Prolific E) Selinas 20) Under common law, what are the three primary types of liability assessed against accountants? A) Breach of contract, fraud, and accounting misalignment B) Fraud, negligence, and accounting misalignment C) Breach of contract, negligence, and innocent misrepresentation D) Negligence, breach of contract, and accounting misalignment E) Negligence, breach of contract, and fraud  Â