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:

Test of Independence

A statistical method used to determine if there is a significant association between two categorical variables.

Nonparametric Tests

Statistical tests that do not assume a specific distribution in the data and are used for ordinal or nominal data.

Spearman Rank

A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.

Correlation

A measure of the relationship between two variables, indicating how changes in one variable are associated with changes in another.