Miller's Mining Company Shareholders Decided to Write Up a Unanimous

question 70

Multiple Choice

Miller's Mining company shareholders decided to write up a unanimous shareholders' agreement so they could directly manage the everyday actions of the company.This agreement removed the directors' ability to release employees,sign contracts,or to vote in meetings,and it also absolved them of their liabilities.Three days earlier,a director of Miller's Mining signed a large contract with a dynamite company.Miller's Mining believes the provision to their company made with the unanimous shareholders' agreement will allow them to void the contract created by the director.Which of the following is true?

• A)Miller's Mining cannot void the contract because of the indoor management rule.
• B)The director was acting outside of his responsibilities as a director which will allow the contract to be voided.
• C)The director did not have actual authority at the time of the contract creation,therefore it can be voided.
• D)Miller's Mining cannot void the contract because the director committed a strict liability offence.
• E)Miller's Mining cannot void the contract because the director committed an absolute liability offence.

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Definitions:

Quantitative Research

A research method focused on gathering numerical data and performing statistical, mathematical, or computational techniques.

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The intrinsic, fundamental nature or most important quality of something or someone.

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