Courts Will Occasionally Determine in a the Course of a Lawsuit

question 9

Multiple Choice

Courts will occasionally determine in a the course of a lawsuit against a corporation that the usual limited liability protections for shareholders will be set aside, imposing liability on individual shareholders or entities that exist behind the corporation. This is called _____.

• A) ultra vires
• B) piercing the corporate veil
• C) strict foreclosure
• D) renunciation of a corporation
• E) takingover

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Definitions:

Promotional Programs

Marketing strategies designed to increase awareness, interest, and sales of a product or service through various incentives and campaigns.

Ultimate Consumer

The end-user or final buyer of a product or service, typically individuals purchasing for personal or household use.

Industrial Distributor

A company that purchases goods directly from manufacturers and sells them to various industrial, commercial, and institutional customers.

Prescription Drug

Medications that are legally available only with a valid prescription from a licensed healthcare provider.