Benny bought shares in Big Chip Maker (BCM) when the shares were trading for $37 a share. For the past 9 years BCM shares have not traded above $21. Can Benny rescind his purchase based on failure of consideration?
a. Yes, he clearly gave more value than he received.
b. Yes, he suffered an economic detriment
c. Yes, there is a difference in value sufficient to trigger the adequacy of consideration rule.
d. No, unless he was induced into buying the shares through fraud or other wrongdoing.
Ans: d. No, unless he was induced into buying the shares through fraud or other wrongdoing.
Business
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