Warren Was the President of a Corporation Whose Articles of Incorporation

question 84

Essay

Warren was the president of a corporation whose articles of incorporation specified that the corporation's purpose was to market dairy products.Warren,however,convinced the board of directors to support him in opening a furniture store.Warren proceeded to enter into contracts with furniture suppliers.When some of the shareholders discovered that the corporation was going into the furniture business,they wanted the furniture venture ended.Unfortunately,the corporation had already entered into a contract for upholstery supplies that had been delivered.What is the term for acts of a corporation beyond its express and implied powers,and what remedies does the Revised Model Business Corporation Act provide when a corporation commits such act? What is the most likely result if the supplier of the upholstery supplies sues for payment?

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Definitions:

Rehabilitation

A process aimed at enabling individuals recovering from injury or disease to restore lost skills and regain maximum self-sufficiency.

Red Reflex

A phenomenon observed during an eye examination where the fundus of the eye reflects light back through the pupil, appearing red; it's used to screen for abnormalities.

Newborn Infant

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Eye Movements

The voluntary or involuntary movements of the eye, which include looking, reading, and tracking objects.