Question 1

What is the meaning of ex officio authority?

Accepted Answer

"Ex officio" authority refers to authori

Question 2

If an employee commits a tort despite the corporation instructing him to avoid the act,the corporation cannot be held liable.

Accepted Answer

A) True 
 B)False

Question 3

Under the MBCA,shareholders may remove directors without cause.

Accepted Answer

A) True 
 B)False

Question 4

Who are the owners of the corporation?

Accepted Answer

A)  The directors of the board 
B)  The shareholders 
C)  The employees 
D)  The executive officers 
A)  The directors of the board 
B)  The shareholders 
C)  The employees 
D)  The executive officers

Question 5

Defensive devices adopted by a board to protect an original merger transaction must withstand judicial scrutiny under an enhanced standard of review.Describe the key features of the enhanced judicial scrutiny test in this scenario.

Accepted Answer

Defensive devices adopted by the board t

Question 6

A law that holds that directors will have no liability for breach of the duty of care in the absence of willful misconduct or recklessness and that does not require board or shareholder action is called a(n):

Accepted Answer

A)  cap on monetary damages statute. 
B)  charter option statute. 
C)  self-executing statute. 
D)  enabling statute. 
A)  cap on monetary damages statute. 
B)  charter option statute. 
C)  self-executing statute. 
D)  enabling statute.

Question 7

Briefly write about the three fiduciary duties that officers and directors owe the corporation.

Accepted Answer

Directors and officers have three duties

Question 8

The _____ binds the corporation on receipts,checks,and endorsements.

Accepted Answer

A)  corporate secretary 
B)  treasurer 
C)  chairman 
D)  vice president 
A)  corporate secretary 
B)  treasurer 
C)  chairman 
D)  vice president

Question 9

A director of a corporation has the individual right to:

Accepted Answer

A)  establish the price for the sale of shares of stock. 
B)  elect and remove shareholders. 
C)  sell, lease, and mortgage assets of the corporation outside the normal course of its business. 
D)  inspect the corporate books and records. 
A)  establish the price for the sale of shares of stock. 
B)  elect and remove shareholders. 
C)  sell, lease, and mortgage assets of the corporation outside the normal course of its business. 
D)  inspect the corporate books and records.

Question 10

Which of the following is true of liability for torts and crimes in corporations?

Accepted Answer

A)  If the employee commits a crime or tort while acting outside the scope of employment, the corporation is liable. 
B)  If an employee commits a tort within the scope of employment but outside the office space, the corporation is not liable. 
C)  When a corporate officer did not know of the employee's crime or tort, the officer is still liable. 
D)  When a corporate officer could have prevented an employee's tort but did not, the officer may be liable. 
A)  If the employee commits a crime or tort while acting outside the scope of employment, the corporation is liable. 
B)  If an employee commits a tort within the scope of employment but outside the office space, the corporation is not liable. 
C)  When a corporate officer did not know of the employee's crime or tort, the officer is still liable. 
D)  When a corporate officer could have prevented an employee's tort but did not, the officer may be liable.

Exam 29: Management of the Corporate Business

What is the meaning of ex officio authority?

If an employee commits a tort despite the corporation instructing him to avoid the act,the corporation cannot be held liable.

Under the MBCA,shareholders may remove directors without cause.

Who are the owners of the corporation?

Defensive devices adopted by a board to protect an original merger transaction must withstand judicial scrutiny under an enhanced standard of review.Describe the key features of the enhanced judicial scrutiny test in this scenario.

A law that holds that directors will have no liability for breach of the duty of care in the absence of willful misconduct or recklessness and that does not require board or shareholder action is called a(n):

Briefly write about the three fiduciary duties that officers and directors owe the corporation.

The _____ binds the corporation on receipts,checks,and endorsements.

A director of a corporation has the individual right to:

Which of the following is true of liability for torts and crimes in corporations?

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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