Fact Pattern 30-1 Ray Is a Shareholder of Small Biz Company (SBC). When

question 63

Multiple Choice

Fact Pattern 30-1
Ray is a shareholder of Small Biz Company (SBC) . When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 30-1. Ray's suit is a shareholder's

• A) business-judgment rule suit.
• B) derivative suit.
• C) duty-of-care suit.
• D) duty-of-loyalty suit.

---

Definitions:

Voting Rights Act

A landmark piece of federal legislation in the United States passed in 1965 to prohibit racial discrimination in voting.

Unconstitutional

Actions, laws, or policies that are deemed to violate the principles or specific provisions of a constitution, rendering them invalid or unenforceable.

Tiebreaking Votes

Votes cast by a presiding officer, leader, or designated member, that decides an issue when the votes are evenly split.

Committee Assignments

Committee assignments refer to the distribution of positions and responsibilities within legislative committees to members of legislatures.