Sam Is a Promoter Acting on Behalf of a Corporation

question 15

Multiple Choice

Sam is a promoter acting on behalf of a corporation that has not yet been fully incorporated.Under the Revised Model Business Corporation Act,if Sam acts on behalf of the yet-to-be-formed corporation,who is liable in the event of a breach of contract?

• A) The corporation becomes liable once formed, and Sam will be shielded from liability.
• B) The principals of the forming corporation are liable, and Sam will be shielded from liability.
• C) Sam is jointly and severally liable for the liability incurred even after the corporation is formed.
• D) Sam is personally liable, with the principals shielded from liability.

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Definitions:

Learned Responses

Behaviors that individuals acquire through conditioning or experience, as opposed to innate reflexes or instincts.

Functional Autonomy

A concept in psychology suggesting that motivations in an adult's life can become independent of their origins and exist for their own sake.

Addictions

Compulsive engagement in rewarding stimuli, despite adverse consequences, often leading to a loss of control over the behavior.

Repetitive Actions

actions or behaviors that are performed repeatedly, often as a part of a routine or compulsive behavior in various psychological conditions.