Series 79 practice questionhardLegal due diligence – disclosure schedules
During legal due diligence, what is the PRIMARY function of disclosure schedules in an acquisition agreement?
- ATo qualify the representations and warranties made by the seller✓ Correct answer
- BTo summarize key financial terms
- CTo replace the main body of the agreement
- DTo provide deal marketing materials
Explanation
Why A — To qualify the representations and warranties made by the seller
Disclosure schedules provide detailed exceptions to reps and warranties, protecting the seller from future claims if issues have been disclosed. They do not summarize terms, replace the agreement, or serve marketing purposes.
Turn it into reps
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