What Is an Exculpatory Clause

question 14

Multiple Choice

What is an exculpatory clause?

• A)A requirement that the company pay the legal fees of directors who are sued for actions taken on behalf of the company
• B)A provision that if a party enters into a contract believing in good faith that the corporation exists, he cannot later take advantage of the fact that it does not
• C)A requirement that a corporation cannot undertake any transaction unless the charter permits it
• D)A provision that protects directors from personal liability to the corporation and its shareholders

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Definitions:

Feelings

The emotional responses or states that arise from one's circumstances, moods, or relationships with others.

Automobile Purchase

The act of buying a car, which involves considering various factors such as price, brand, model, features, and personal preferences.

Marketers

Individuals or entities engaged in creating strategies to promote, sell, and enhance the perception of products or services to target consumers.

Better Price

Refers to a more favorable cost of goods or services, indicating a lower price point for comparable quality.