According to the __________ doctrine,a court may determine that the inclusion of sufficient cautionary statements in a prospectus renders immaterial any misrepresentations and omissions contained therein.
A) actual cause
B) bespeaks caution
C) common sense
D) trap door

Question

Quizplus · Accepted Answer

The bespeaks caution doctrine allows a court to find that the inclusion of sufficient cautionary statements in a prospectus renders any misrepresentations and omissions immaterial. This is based on the notion that investors would have understood the risks of the investment, despite any misleading information presented, due to the presence of the cautionary statements. The other answer options (actual cause, common sense, trap door) are not relevant to this legal doctrine.

According to the __________ Doctrine,a Court May Determine That the Inclusion