Why Are Restraining Orders Dangerous for a Startup

question 19

Multiple Choice

Why are restraining orders dangerous for a startup?

• A)They paralyze the company until the court battle is resolved
• B)They forbid the company to go public
• C)It's a first step of bankruptcy
• D)The board of directors has to be reelected, which is a very long process
• E)They violate the rights of minority shareholders

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Definitions:

Regulatory Crimes

Offenses that violate laws or regulations intended to protect the public welfare, often involving health, safety, and the environment.

Mala Prohibita

Refers to acts that are crimes only because they are prohibited by law, not because they are inherently immoral or harmful.

Unlawful Act

An action that is forbidden by law or legislation.

Statute

A written law passed by a legislative body at the federal, state, or local level, which governs society and is enforceable by the courts.