Several States' Constitutions Place Stricter Limits Than the MBCA on Permissible

question 20

Multiple Choice

Several states' constitutions place stricter limits than the MBCA on permissible considerations for issuance of common shares by corporations. Which of the following considerations is permissible under the MBCA but not permissible by such state constitutions?

• A) A promoter's preincorporation services worth $25,000, which were performed prior to incorporation.
• B) A gratuitous promise to contribute $35,000 in cash to the corporation.
• C) Bonds of another corporation, which are worth $15,000.
• D) The president's actual performance of services for the corporation, which are worth $50,000.

Comprehend the legal concepts related to performance and non-performance within contracts.

Knowledge of the statute of limitations and its applicability to contract disputes.

Recognize the role of specific performance as a remedy and situations in which it is applied.

Understand the concept of mitigating damages and its relevance in breach of contract cases.

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Definitions:

Risky Behaviors

Actions that expose individuals to harm or hold a significant chance of negative outcomes, often associated with health or safety.

Unsafe Sex

Sexual activities that increase the risk of sexually transmitted infections (STIs) and/or unplanned pregnancies due to the absence of protective measures.

Peer Group

A group of individuals, typically of similar age, background, or social status, with whom a person associates and identifies.

Low-Status Crowds

Refers to social groups perceived as having lower prestige or importance within a social hierarchy.