A Director of a Corporation Knowingly Releases a Dangerous Drug

question 86

Multiple Choice

A director of a corporation knowingly releases a dangerous drug that will kill 10 percent of those who take the medication.He was concerned when the drug was being developed so he told the head of medical testing not to let him know if the drug had any adverse side effects.Since he was not told of the side effects,he felt he could not be required to report them to the FDA.Which of the following is true of his liability?

• A)He cannot be held responsible because he was unaware of the dangers of the drug.
• B)He cannot be held responsible if the board of directors approved the release of the drug.
• C)He cannot be held responsible because the corporation released the drug.
• D)He cannot be held responsible because the illegal actions of hiding the drug's side effects were done by a subordinate.
• E)He can be held responsible for his own torts and crimes and for the crimes of other employees whom they have failed to adequately supervise.

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Definitions:

Capital Assets

Long-term assets such as property, plant, and equipment that are used or held for investment purposes, the sale of which results in capital gains or losses.

Gift

Something voluntarily transferred by one person to another without compensation.

Short-term Capital Loss

A loss realized from the sale or exchange of a capital asset held for one year or less.

Long-term Capital Gain

Profit from the sale of an asset held for more than one year, typically taxed at a lower rate than regular income.