Which One of the Following Is an Example of Breach

question 97

Multiple Choice

Which one of the following is an example of breach of fiduciary duty?

• A) The directors of the corporation refuse to give a pay raise to the employees although they had not received a pay raise for five years.
• B) A director profited $120,000 from a contract between the corporation and a firm in which he had an interest after he made full disclosure of his interest to the board of directors and abstained from the vote on the contract.
• C) An officer of the corporation learned of a business opportunity intended for the corporation and intercepted it for his own benefit.
• D) The directors refused to declare a dividend, contrary to the request by its preferred shareholders.
• E) A shareholder owning 2% of the outstanding shares started a business in direct competition with the corporation in which he held shares.

Grasp the concept and implications of duress and undue influence in contract enforcement and rescission.

Comprehend the significance of express and implied warranties in sale transactions.

Understand the conditions and legal grounds for contract termination or rescission due to factors like impossibility of performance.

Recognize the differing types of damages and remedies available in contract law including compensatory, consequential, and liquidated damages.

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Definitions:

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Delusion

A false belief firmly held despite clear evidence to the contrary, often occurring as part of a psychological disorder.

Persecutory Delusion

A type of false belief where a person thinks that they are being mistreated, spied on, or plotted against without evidence.

Somatic Delusion

A false belief about the functioning or physical appearance of one's own body.