Albert Is the Principal Shareholder of a Large Investment Company

question 57

Multiple Choice

Albert is the principal shareholder of a large investment company and holds 45 percent of its common shares,which are valued at $500 000.00.Recently,Albert's company invested heavily in a gold mining company,which fraudulently represented finding and owning a new gold deposit in northern Canada.Albert's company lost a substantial amount of money,with the result that the value of Albert's common shares dropped to $25 000.00.Albert now launches a lawsuit against the gold mining company for the loss in value of his shares.In this case

• A)Albert will be entitled to a quantum meruit claim against the gold mining company.
• B)Albert will recover his loss because his cause of action is in fraud or deceit.
• C)Albert will not recover his loss because he has no claim for damages for a wrong done to his company.
• D)Albert will recover his loss because the court will lift the corporate veil of the gold mining company.
• E)Albert will recover his loss because the court will force the gold mining company to insure his shares.

---

Definitions:

Classical Conditioning

Learning to make an involuntary response to a stimulus other than the original, natural stimulus that normally produces the response.

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the issuance of tokens that can be exchanged for desired rewards.

Contingency Contract

A formal, written agreement between the therapist and client (or teacher and student) in which goals for behavioral change, reinforcements, and penalties are clearly stated.