Which of the Following Is the Most Likely Result If

question 50

Multiple Choice

Which of the following is the most likely result if Belinda sues Martha,Greg,and Prudence for unpaid amounts without a novation in place?

• A) Belinda would likely win because courts generally hold promoters liable and rule that preincorporation contracts do not bind the new corporation.
• B) Belinda would likely win unless it can be established that the new corporation is making a profit and is able to pay her.
• C) Belinda would likely win unless it can be established that the new corporation was capitalized with at least $100,000 and is able to pay her.
• D) Martha, Greg, and Prudence will win so long as they can prove that Belinda knew that the feed was purchased for a new corporation and not for their personal farm use.
• E) Martha, Greg, and Prudence will win unless they have already paid partial amounts leading Belinda to expect that they, not the corporation, had accepted liability.

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Definitions:

Altered State

A mental state that significantly differs from a normal waking state, due to various causes such as meditation, drugs, or hypnosis.

Stimulant

A compound that increases the activity within the body's physiological or nervous systems.

Nicotine

A stimulant and addictive substance found primarily in tobacco products.

Alcohol

A colorless, volatile liquid that is the active ingredient in drinks such as beer, wine, and spirits, and is also used in sterilization and as a fuel source.