In Storetrax

question 348

Multiple Choice

In Storetrax.com v. Gurland, where Gurland, the founder of Storetrax.com, was removed as president but denied severance pay and sued for that, the appeals court held that he was:

• A) not due severance pay because he was a board member and that was a conflict of interest
• B) not due severance pay because he breached his obligation to the company while an officer and board member so lost the right to such compensation
• C) due the severance pay promised because there was no conflict of interest in his role as a board member and his compensation
• D) due severance pay promised as other members of the board breached their obligation to follow the bylaws of the company, so they could be personally liable to Gurland
• E) none of the other choices

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Definitions:

Sheridan Broadcasting

A media company known for its operations in radio broadcasting, particularly in serving African American communities.

Good Faith

An honest intention to act without taking an unfair advantage over another party, often related to contractual dealings.

Honest Belief

Refers to a genuine conviction or acceptance of a fact without intention to deceive, often considered in legal contexts to determine the sincerity of a person’s actions or statements.

Liability Provision

A clause within a contract or agreement that specifies the conditions under which a party is liable for certain outcomes, damages, or losses.