Reference - Machine Malfunction

question 60

Multiple Choice

Reference - Machine Malfunction. Bruno, the president of a corporation operating work out facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Under which of the following should Bruno and the board of directors defend themselves in an action brought by shareholders for harming the corporation?

• A) The Superior Judgment Rule
• B) The Research and Investigation Rule
• C) The Business Judgment Rule
• D) The Rule of Corporate Integrity
• E) There is no defense.

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Definitions:

Vision

The ability to see, which involves the processing of visual information by the eyes and brain.

Snellen Letter Chart

A chart commonly used by eye care professionals to measure visual acuity, featuring rows of letters that decrease in size.

Funduscopic Examination

A medical procedure that involves looking at the interior surface of the eye, including the retina and optic nerve, using an instrument called an ophthalmoscope.

Red Reflex

A reddish reflection of light from the eye's retina observed during an ophthalmologic examination.