A Law That Holds That Directors Will Have No Liability

question 42

Multiple Choice

A law that holds that directors will have no liability for breach of the duty of care in the absence of willful misconduct or recklessness and that does not require board or shareholder action is called a(n) :

• A) cap on monetary damages statute.
• B) charter option statute.
• C) self-executing statute.
• D) enabling statute.

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Definitions:

Quota

A government-imposed trade restriction limiting the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for, representing their profit.

Free Trade

The unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other trade barriers.