Arthur Is a Shareholder of Rowson, Inc

question 49

Multiple Choice

Arthur is a shareholder of Rowson, Inc. He has evidence to suggest that its president/CEO has allowed the corporation to engage in acts that are ultra vires . Based upon this evidence, Arthur contacts an attorney and sues the corporation on behalf of the corporation. The lawsuit Arthur has filed is known as:

• A) a direct suit.
• B) a derivative suit.
• C) a class action suit.
• D) an unauthorized suit.

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Definitions:

Intention to Commit

A plan or decision to engage in a specific action or behavior.

Irresistible Impulse Rule

A legal defense theory stating that a defendant was compelled to commit a crime due to an overwhelming impulse that they could not resist, despite understanding the nature of the act.

Diminished Capacity

A legal defense asserting that an individual's mental state, though not completely impaired, was significantly disturbed at the time of the crime, affecting their judgment or intentions.

Guilty but Mentally Ill

A legal verdict that indicates the defendant is guilty of the charges but was also suffering from mental illness at the time of the crime.