The Board of Directors of Filex Corporation at a Regular

question 13

Multiple Choice

The board of directors of Filex Corporation at a regular meeting of the board entered into a contract with Ginger Grant,one of the directors.This contract called for Filex to purchase 120 acres of land from Ginger.There were ten members on the board,eight of whom were present at the meeting.One of the directors present was Ginger.All the other directors were disinterested in the transaction and not related to Ginger.After a lengthy discussion,six directors voted in favor of the contract and two voted against it.Ginger voted for the contract.Which of the following is true?

• A) The contract between Ginger and the corporation is illegal and invalid.
• B) The contract is valid since it was approved by a majority of a quorum of the board.
• C) The contract becomes void if the corporation proves that the contract was unfair to it.
• D) The contract is voidable unless Ginger proves that the contract is fair to the corporation.

---

Definitions:

Debriefing

A process wherein experimental participants are given a full explanation of the experiment upon its completion, including its purpose and any deceptions, to resolve any ethical concerns.

Excessive Payment

Paying out more than what is deemed necessary or required, often implying a waste or misuse of resources.

Local Laws

Rules and regulations that are enacted by local government bodies and applicable within a specific geographic area or community.

Business Administration

The study and management of business operations, including finance, marketing, and human resources, aimed at ensuring an organization's efficiency and effectiveness.