Lew Is a Director of Mines, Inc

question 34

Multiple Choice

Lew is a director of Mines, Inc. Using information that is not available to the public, he makes a profit trading in Mines securities. Lew is most likely liable for breach of

• A) ​none of the choices.
• B) ​the business judgment rule.
• C) ​the duty of loyalty.
• D) ​the duty of care.

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Definitions:

Accord And Satisfaction

A legal contract whereby a dispute is settled by the parties involved agreeing to give and accept something in settlement of the claim and thus satisfying both sides.

Unliquidated Debt

An obligation whose precise financial amount is yet to be established.

Liquidated Debt

A debt with a specific, fixed amount that has been agreed upon by all parties involved.

Accord

An agreement in law where two parties agree to settle a dispute by one party fulfilling a condition offered by the other.