Mediation Indicates That Both Sides of the Conflict Have Voluntarily

question 42

True/False

Mediation indicates that both sides of the conflict have voluntarily agreed to allow a third party to suggest solutions but that neither side is bound by the decision.

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Definitions:

Consent Restraint

A security transfer restriction requiring a shareholder to obtain the consent of the corporation or its shareholders prior to the shareholder’s sale of her shares.

Option Agreement

A share transfer restriction granting a corporation or its shareholders an option to buy a selling shareholder’s shares at a price determined by the agreement.

Buy-and-Sell Agreement

a legally binding agreement between co-owners that outlines what will happen to an owner’s share of the business if they depart the business due to death or any other reason.

De Facto Corporation

A business that operates as if it were a corporation although it has not completed the formalities required for legal incorporation.