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- A corporate director or officer may comply with his/her duty of care by doing all of the following, except: O 1) engaging in illegal activity that injures the corporation. 2) making informed decisions. 3) using the same degree of care that an ordinary prudent person would in a similar situation. 4) making decisions that have a rational business purpose.Dick offered to sell Jane his property. Before Jane can accept the offer, lightning strikes the house, starting a fire and it is totally destroyed. Which of the following is true? Group of answer choices The offer is terminated by operation of law. Jane can still accept the offer, and if she does, Dick must sell it to her at a discounted price for the value of the remaining land. Jane can still accept the offer. She will be entitled to the insurance proceeds. Dick can still revoke his offer, so long as he does so before Jane accepts.Under the business judgement rule, a court will uphold the decisions of a director as long as they are made (1) in good faith(2) with the care that a reasonably prudent person would use, and (3) with the reasonable belief that the director is acting in the best interests of the corporation. Does the business judgment rule give directors too much latitude in decision making and fosters risk taking?
- If any of the owners decided eventually to sell any or all of their shares and had identified a potential buyer, they all agreed that Ay-Bee-Cee-Dee Corp. should be granted the right to match the offer of the potential buyer and, thereby, buy back the shares rather than allowing that potential buyer to become a part owner of the company. To accomplish this, which of the following types of restrictions on transfer needs to be attached to the shares? Multiple Choice Provision disqualifying purchasers Buy-and-sell agreement Consent restraint Right of first refusal Option agreementA client is transferring their estate to their daughter. They aren't charging their daughter any money for the estate (what a deal!) and are unsure what to put in the deed as consideration. You advise them that consideration: must be equal to the appraised value of the property can be "love and affection," and will be conveyed using a gift deed must be explicitly specified, down to the penny, on the deed must be money, but doesn't have to be a lot of moneyone y Jason just closed on the purchase of real estate under an installment sales contract. Which of the following accurately describes Jason's present status? Jason acquires equitable title for now but can NOT take possession while paying off the loan. Jason acquires legal title immediately and can take possession while paying off the loan. Jason acquires equitable title for how and can take possession while paying off the loan. Jason acquires stocks in the corporation that owns the property.
- Bailey is a limited partner in his company. A general partner in his company is going on an extended vacation and has asked Bailey to run the company while he is gone. If Bailey agrees to do so, he will no longer qualify as a limited partner. ( a) True b) FalseSue Flay's Cakery promises to pay Oscar Ruitt not to park in a city-designated no-parking zone in front of her store. This agreement is: (Choose all of the correct answers.) Not enforceable because Oscar Ruitt has no legal right to park in a city-designated no-parking zone Not enforceable because Oscar Ruitt never made any enforceable promise to Sue Flay's Cakery Not enforceable because Oscar Ruitt is merely making an illusory promise Enforceable because Oscar Ruit is giving up the right to do something he would otherwise have the right to do Enforceable because Sue Flay's Cakery is offering legally sufficient consideration to Oscar RuittAble does not ever want Baker's shares to be transferred to Baker's brother, who has been convicted of criminal fraud and embezzlement on several occasions and who is currently serving time in a federal prison for one of those convictions. Which of the following types of restrictions on the transfer of Baker's shares might Able insist to accomplish this, even if Carter and Dennis don't share Able's concerns? Multiple Choice A put agreement Option agreement Provision disqualifying purchasers Buy-and-sell agreement Right of first refusal
- Mary Decker is suing the manufacturer of her car becauseof a defect that she believes caused her to have an accident, and kept her out of work for a year. She is suing the com-pany for $3.5 million. The company has offered her a set-tlement of $700,000, of which Mary would receive $600,000 after attorneys’ fees. Her attorney has advisedher that she has a 50% chance of winning her case. If sheloses she will incur attorneys’ fees and court costs of $75,000. If she wins she is not guaranteed her full re-quested settlement. Her attorney believes that there is a 50% chance she could receive the full settlement, in whichcase Mary would get $2 million after her attorney takes hiscut, and a 50% chance that the jury will award her a lesseramount of $1,000,000, of which Mary would get $500,000.Using decision-tree analysis, decide if Mary should suethe manufacturer.Is it possible to be used partly for public purpose and partly private purpose without violating the limitation that a tax must be for public purpose?A. No, the purpose shall either be private or public. It cannot be bothB. Yes, The purpose is not important as long as the tax of the property can be accounted forC. No, the purpose to be accomplished by taxation need not be exclusively public. To benefit private individuals will be tantamount to deprivation of property of those who paid the tax without due processD. Yes, The purpose to be accomplished by taxation need not be exclusively public. Although private individuals are directly benefited such as the victims of flood victims, the tax will be valid provided such benefit is only incidentalIn 2010, X and B agreed that they will pretend that they will enter into a contract of sale so that X will have a lesser tax to pay. In the contract of sale, it was indicated that X will sell the car for P50Million to which B agreed. What is this kind of contract? A. Absolute simulation B. Relative simulation C. Factual simulation D. Fictional simulation