Acme Inc Found a Tricky Way to Conform to the Letter

question 120

Multiple Choice

Acme Inc. found a tricky way to conform to the letter of the law with respect to new EPA regulations, even though they violated the spirit of the law. This is called

• A) the capture theory.
• B) collusive response.
• C) share-the-gains, share-the-pains theory.
• D) creative response.

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Definitions:

Selling Shareholder

An existing stockholder who offers their shares for sale in the context of a securities offering.

Obtain Consent

The act of receiving permission or approval from someone to proceed with a specific action or process.

Corporation by Estoppel

A legal doctrine that prevents a party from denying the corporate status of an entity when they have treated it as a corporation.

De Facto Corporation

A company treated as legally incorporated, despite not having completed all required incorporation procedures, based on its actions or intentions to operate as a corporation.