The Doctrine of Ultra Vires Has No Place in Modern

question 53

Essay

The doctrine of ultra vires has no place in modern corporate law. The public should be entitled to assume a corporation has all the rights and duties of a natural person, and the doctrine should be abolished. Discuss this statement and any other issues it raises.

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Definitions:

Consignment

involves goods being given to a third party to sell, with the owner retaining ownership until the items are sold.

Merchandise

Goods that are bought and sold in the course of business, typically in a retail or wholesale environment.

Inventory

The total amount of goods and materials a business has in stock, either for sale or used in production.

Purchase Price

The amount of money paid to buy goods or services.