Which of the following statements is true of creating liabilities under Section 18?
A) There is a liability under section 18 for simple negligence.
B) The plaintiff in a Section 18 case must prove reliance on the false or misleading filing of documents.
C) Inaccuracy of filing is sufficient to impose liability under Section 18.
D) The defendant's good faith is considered a defense under Section 18.
E) Freedom from fraud is an invalid defense under an action based on Section 18.

Question

Quizplus · Accepted Answer

The requirement that an intent to deceive be proven under Section 18 means that the defendant's good faith is a defense. Good faith exists when a person acts without knowledge that the statement is false and misleading. In other words, freedom from fraud is a defense under an action based on Section 18. There is no liability under this section for simple negligence.

Which of the Following Statements Is True of Creating Liabilities