The Board of Directors

question 45

Multiple Choice

The board of directors

• A) are hired by the CEO.
• B) are elected by shareholders.
• C) have unlimited liability since they oversee the day-to-day operations of the firm.
• D) are employed by the Securities Exchange Commission to ensure its rules and regulations have been met.

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Definitions:

Restatements (Second) of Torts

A set of treatises or legal reference books that summarize the general common law principles in the United States regarding torts, explicitly presenting the second revision of these principles.

Disclaimer of Liability

A statement that aims to limit one's responsibility for any harm or damages incurred by others as a result of using provided services or products.

Express Warranty

An explicit promise or guarantee about the quality or nature of a product, made by a seller to induce the buyer to purchase.

Section 402A

A section of the Restatement (Second) of Torts that made manufacturers and suppliers liable for harm caused by defective products provided to consumers without the need for proving negligence.