Questions from Business Law

Q: Jane sells and delivers to Gerald on June 1 certain goods and

Jane sells and delivers to Gerald on June 1 certain goods and receives from Gerald at the time of delivery Gerald’s check in the amount of $9,000 for the goods. The following day, Gerald is petitioned...

Q: A bylaw of Betma Corporation provides that no shareholder can sell his

A bylaw of Betma Corporation provides that no shareholder can sell his shares unless he first offers them for sale to the corporation or its directors. The bylaw also states that this restriction shal...

Q: Neese, trustee in bankruptcy for First Trust Company, brings a

Neese, trustee in bankruptcy for First Trust Company, brings a suit against the directors of the company for losses the company sustained as a result of the directors’ failure to use due care and dili...

Q: Minority shareholders of Midwest Technical Institute Development Corporation, a closed-

Minority shareholders of Midwest Technical Institute Development Corporation, a closed-end investment company owning assets consisting principally of securities of companies in technological fields, b...

Q: Riffe, while serving as an officer of Wilshire Oil Company,

Riffe, while serving as an officer of Wilshire Oil Company, received a secret commission for work he did on behalf of a competing corporation. Can Wilshire Oil recover these secret profits and, in add...

Q: Muller, a shareholder of SCM, brought an action against SCM

Muller, a shareholder of SCM, brought an action against SCM over his unsuccessful negotiations to purchase some of SCM’s assets overseas. He then formed a shareholder committee to challenge the positi...

Q: Pritchard & Baird was a reinsurance broker. A reinsurance broker arranges

Pritchard & Baird was a reinsurance broker. A reinsurance broker arranges contracts between insurance companies so that companies that have sold large policies may sell participations in these policie...

Q: Donald J. Richardson, Grove L. Cook, and Wayne

Donald J. Richardson, Grove L. Cook, and Wayne Weaver were stockholders of Major Oil. They brought a direct action, individually and on behalf of all other stockholders of Major, against certain direc...

Q: Klinicki and Lundgren, both furloughed Pan Am pilots stationed in West

Klinicki and Lundgren, both furloughed Pan Am pilots stationed in West Germany, decided to start their own charter airline company. They formed Berlinair, Inc., a closely held Oregon corporation. Lund...

Q: A, B, C, D, and E constituted the

A, B, C, D, and E constituted the board of directors of the X Corporation. While D and E were out of town, A, B, and C held a special meeting of the board. Just as the meeting began, C became ill. He...