Scott Was a Member of the Seven-Person Board of Directors

question 16

Multiple Choice

Scott was a member of the seven-person board of directors of Buffalo Corporation.Officers of that corporation were considering a large purchase of new equipment to begin production of a completely new product line.The board of directors had not been consulted about the new venture,but Scott found out about the plan and objected to it being implemented.He sought to inspect the corporate books and records to gain factual information supportive of his position.The officers refused his inspection request,asserting that Scott had no management function or power.Under these circumstances,Scott:

• A)is barred from examination of the books and records of the corporation under the business judgment rule.
• B)has the right to inspect corporate books and records,as information regarding the corporation and its affairs is essential to perform his duties.
• C)is barred from examination of the books and records of the corporation under the doctrine of respondeat superior.
• D)has no right to inspect the books and records of the corporation unless authorized by all other members of the board.

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Definitions:

Linguistic-Relativity Hypothesis

The theory that the structure of a language affects its speakers' world view or cognition, sometimes called the Sapir-Whorf hypothesis.

Name Calling

The use of offensive or derogatory words aimed at belittling or insulting someone.

Number of Choices

Refers to the options available to an individual or system for decision-making, influencing cognitive processing and outcomes.

Barry Schwartz

An American psychologist famous for exploring the social and psychological effects of free choice.