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Question
Machine Malfunction. Bruno, the president of a corporation operating work out facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Under which of the following should Bruno and the board of directors defend themselves in an action brought by shareholders for harming the corporation?
A. The Superior Judgment Rule
B. The Research and Investigation Rule
C. The Business Judgment Rule
D. The Rule of Corporate Integrity
E. There is no defense.
Answer
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Related questions
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Which is not an intention tort against one's economic interest?
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B. Intentional interference with a contract
C. Unfair competition
D. Fraudulent misrepresentation
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Under which of the following situations does the tort of trespass to realty occur?
A. When a person causes an object to be placed on the land of another without the landowner's permission.
B. When a person stays on the land of another when the owner tells him to depart.
C. When a person refuses to remove something he placed on the property that the owner of the property asked him remove.
D. When a person causes an object to be placed on the land of another without the landowner's permission, when a person stays on the land of another when the owner tells him to depart, and when a person refuses to remove something he placed on the property that the owner of the property asked him remove.
E. None of these because a person does not commit trespass to realty unless it can be established that the person initially entered the land of another without permission.
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Which of the following gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others?
A. The Internet Communications Act of 2000.
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C. The Communications Decency Act of 1996.
D. The Internet Communications Protection Act of 1998.
E. The Blog Protection Act of 2001.
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Robby calls Bobby on the telephone and threatens to come over and break his nose. Which of the following is true?
A. Robby's conduct constitutes a battery.
B. Robby's conduct constitutes an assault.
C. Robby's conduct constitutes both a battery and an assault.
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In which of the following is a category into which intentional torts are divided?
A. Torts against persons, property, and animals.
B. Torts against property, economic interests, and roadways.
C. Torts against persons, economic interests, and strict liability.
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E. None of these.
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Which of the following is true regarding the intent needed for an intentional tort?
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B. The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in a physical, not merely economic, injury to another.
C. The intent at issue is intent to harm that results in an injury, physical or economic, to another.
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Define the term "criminal fraud" and discuss the three elements generally involved in establishing criminal fraud.
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List the elements the government must prove in order to establish bribery of a public official under the federal statute criminalizing that offense.
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A. felony
B. misdemeanor
C. petty
D. absolute
E. strict liability
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First Amendment protections do not apply to corporations.
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The privileges and immunities clause give the federal government the authority to collect taxes.
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Federal laws include rules passed by federal administrative agencies.
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Congress has the power to enact legislation, but the president can veto a law that Congress passes.
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The U.S. Constitution allocates power of the federal government between the executive and judiciary branches.
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Which of the following are rules regarding the internal operations of an agency?
A. Procedural
B. Interpretive
C. Legislative
D. Adjudicative
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Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?
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C. A quasi-legal agency
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Set forth the steps involved in formal rule making.
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A. enabling
B. authorization
C. enforcement
D. dedicated
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DUI Charge. Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, took very seriously its role of enforcing the statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission and that in any event, action by an agency is always upheld. Which of the following would have reached the decision at her hearing before the administrative agency?
A. An adjudicative law judge
B. An administrative law judge
C. A federal court judge
D. A superior court judge
E. A jury
Q:
DUI Charge. Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, took very seriously its role of enforcing the statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission; and that, in any event, action by an agency is always upheld. Which of the following is true regarding the statement of the agency that Monique had no right to appeal to court?
A. The agency representative was wrong; and if Monique cannot resolve the issue within the agency, she may appeal to court for judicial review.
B. Because the agency was set up to protect the safety of the public, the agency representative is correct unless Monique can establish that she entered into a separate contractual arrangement with the agency when she was hired that gave her the right to appeal decisions to court.
C. Further information is needed regarding whether the agency was an executive agency or an independent agency because while actions of an independent agency may be appealed to court, actions of an executive agency may not be appealed to court.
D. Further information is needed regarding whether the agency was an executive agency or an independent agency because while actions of an executive agency may be appealed to court, actions of an independent agency may not be appealed to court.
E. Because the agency was set up to protect the safety of the public, the agency representative is correct; and Monique has no right to a court action and no right to enter into a contractual agreement with the agency regarding appeal rights.