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Question
In Smith v. Van Gorkom, the court had to determine whether the business judgment rule protected board members who permitted the sale of a significant amount of stock by the retiring chairman of the board at an undervalued price devaluing the company. The court stated each of the following except:A.normally, the board of directors is entitled to give some weight to statements made by their chairman regarding the valuation of stock.
B.the board in this case had the expertise to make decisions without consulting outside experts but just made a poor decision.
C.failing to review the agreement to sell the stock showed a lack of care.
D.failure to do a valuation analysis of the company showed that the board could not have been working with all appropriate information to render a proper decision.
Answer
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Related questions
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Which of the following involves a third party substitution?
A.novation
B.accord and satisfaction
C.substitute agreement/modification
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In Mobil Oil Exploration & Producing Southeast, Inc. v. United States:
A.Mobil was able to get out of the contract for the $156 million lease because the new law passed at the last minute changed the terms of the original contract amounting to repudiation by the United States.
B.Mobil was able to get out of the contract for the $156 million lease because the new law passed at the last minute changed the terms of the contract, barring certain types of oil exploration, frustrating Mobil's contractual purpose.
C.Mobil could not claim an anticipatory repudiation because even though as new law had been passed, they had not yet filed their oil excavation plan so they could not know whether they were facing a problem.
D.Mobil could not claim an anticipatory repudiation because even though as new law had been passed, it did not substantially change the terms of the original contract.
Q:
Each of the following is a discharge by mutual consent except:
A.accord and satisfaction.
B.novation.
C.rescission.
D.frustration of purpose.
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Which of the following promises ordinarily need not be in writing to be enforceable?
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B.An agreement to sell of a car for $1,500.
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C.this contract is only enforceable if it's in writing
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