The Business Judgement Rule Is Designed to Protect

question 13

Multiple Choice

The business judgement rule is designed to protect

• A)only the manager.
• B)only the manager's decision.
• C)both the manager and the manager's decision.
• D)a business from a conflict of interest.

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Definitions:

United States Supreme Court

The highest federal court in the United States, established pursuant to Article III of the U.S. Constitution, with ultimate appellate jurisdiction over all federal and state court cases involving matters of federal law.

Justices

Judges of the highest courts, particularly those within a country's supreme court, responsible for interpreting the law.

Choice-of-Law Clause

A provision in a contract that specifies which jurisdiction's laws will be applied to interpret the contract.

Breach of Contract

The failure of one party to fulfill the terms agreed upon in a contract, justifying legal action for enforcement or damages by the other party.