All of the Directors of the XYZ Corporation Were Present

question 39

Essay

All of the directors of the XYZ Corporation were present at a meeting called on a Monday evening at 9 p.m. Meetings normally were held on Friday evenings at 6 p.m. At the Monday meeting, a report was made indicating that an agent of the corporation was having difficulties formalizing a contract in a foreign country. The report indicated that if funds were made available to a local political figure, the contract the company desired would be obtained. The directors unanimously voted to forward the necessary funds for this operation to the agent. An action was later commenced against the directors, alleging illegal activities. In response, the directors argue that: (1) no illegal activity had occurred; (2) if an illegal activity did occur, it was not at a valid meeting of the corporation and was therefore not an official action of the board; and (3) if they had to legally defend themselves, they would seek reimbursement from the corporation. Discuss the directors' contentions.

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Definitions:

Threshold Method

A technique used in various fields, including psychology and neuroscience, to determine the point at which a stimulus is strong enough to be detected or produce a response.

Noise

Unwanted or distracting sounds that can interfere with communication or concentration.

Guthrie

An American psychologist who proposed the theory of contiguity, suggesting that learning occurs when a stimulus and response occur close together in time.