Ping Was the President and Chairman of the Board of Directors

question 3

Essay

Ping was the president and chairman of the board of directors of Oh Imports, Inc. Ping was also a major shareholder. Acting as president, Ping negotiated a series of contracts that caused the corporation serious economic losses. In this role, Ping failed to exercise the care of a reasonably prudent person acting in similar circumstances. When substantial economic losses began to pile up, Ping insisted that the corporation breach a contract with Ory in favor of a larger contract that was later entered into with Magnificent Enterprises. Ping hoped to reverse Oh's economic fortunes through this contract with Magnificent, but the attempt failed. Oh then became insolvent. Ultimately, the corporation failed. Two law-suits were initiated against Ping. In the first, a creditor of Oh who never was paid because the business failed sued Ping alleging that the negligence of Ping had caused Oh to fail to pay the creditor what was owed. The second lawsuit instituted by Ory claimed damages from Ping because Ping caused Oh to breach its contract with Ory. Decide both lawsuits.

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Definitions:

Third Party

An entity or individual not directly involved in a legal contract or agreement, but that may be affected by it or participate in certain transactions.

Accountant's Work

Professional activities undertaken by an accountant, including auditing, financial reporting, and tax planning.

Criminal Liability

The legal responsibility for a person or entity for criminal actions or omissions that violate laws, leading to prosecution and punishment.

Willfully Omitted

Intentionally left out or excluded, often referring to information or actions that should have been included or taken.