The Possible Consequences of a Defective Incorporation Include Which of the Following

question 78

Multiple Choice

The possible consequences of a defective incorporation include which of the following?

• A) The state may bring an action against the association for involuntary dissolution.
• B) A third party may assert that it is not liable to the association.
• C) The associates are held personally liable to a third party.
• D) All of these are possible consequences.

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent in the violation of a law or regulation.

Odometer

A device used in vehicles to measure the distance traveled.

Commercial Impracticability

A doctrine that excuses the performance of a contract when an unforeseen event makes it excessively burdensome or difficult to carry out as agreed.

Fraudulent Misrepresentation

False statements made knowingly, without belief in their truth, or recklessly, with intent to deceive and induce another to enter into a contract.