We've found 8 Business Judgment Rule tests

Business Judgment Rule Business Law Joint And Several Liability Legal Management Uniform Partnership Act
Module 25: Business Structure – Flashcards 26 terms
Marvel Brown avatar
Marvel Brown
26 terms
Air Conditioning System Business Judgment Rule Law Of Supply And Demand Legal Management Marketing-Real Estate Real Estate Real Estate Finance Fundamentals Uniform Partnership Act
Ohio Real Estate – Principles & Practices | Hondros College 15 terms
Ruth Blanco avatar
Ruth Blanco
15 terms
Business Judgment Rule Business Law Financial Accounting Intermediate Accounting 1 Legal Environment Of Business Legal Management
ACC 480 CHAPTER 40 – Flashcards 20 terms
Alexandra Robertson avatar
Alexandra Robertson
20 terms
Business Judgment Rule Business Law Legal Management Piercing The Corporate Veil
blaw chapter 28 – Flashcards 69 terms
Rosa Sloan avatar
Rosa Sloan
69 terms
Business Judgment Rule Business Law Directors And Officers Initial Public Offering Legal Management National Labor Relations Act
blaw chapter 34 – Flashcards 25 terms
Elizabeth Mcdonald avatar
Elizabeth Mcdonald
25 terms
Business Judgment Rule Business Law Dodd Frank Act Legal Management Mergers And Acquisitions
Blaw II Chap 43 – Flashcards 55 terms
Jazzlyn Sampson avatar
Jazzlyn Sampson
55 terms
Administrative Procedure Act Business Judgment Rule Business Law Directors And Officers Federal Trade Commission Act Legal Management Liable For Negligence Resale Price Maintenance The Environmental Protection Agency
Chapter 20 study guide – Flashcards 31 terms
Alexander Rose avatar
Alexander Rose
31 terms
Articles Of Incorporation Business Judgment Rule Business Law Directors And Officers International Law Legal Management Liable For Negligence Piercing The Corporate Veil
Law 2 Mid-Term for Review ch 39-41 – Flashcards 100 terms
Jamie Hutchinson avatar
Jamie Hutchinson
100 terms
Demi is an officer of a corporation. She made a difficult business decision. When challenged about her decision, the court ruled she had acted in good faith and that the business judgment rule applied. As such:
Demi will not be held personally liable for a decision that results in money losses to the company
More test answers on https://studyhippo.com/blaw-final-ch-22/
Jenny is an officer of a corporation. She made a difficult business decision. When challenged about her decision, the court ruled she had acted in good faith and that the business judgment rule applied. As such
Jenny will not be held personally liable for a decision that results in money losses to the company
More test answers on https://studyhippo.com/chapter-20-test-flash-cards/
Luke is a director of Motor Parts Corporation. Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firm’s best interest, and without violating any duties owed to it. If, despite these circumstances, Luke exercises poor business judgment, under the business judgment rule Luke is
immune from liability
More test answers on https://studyhippo.com/business-law-ch-20/
The Business Judgment Rule Applies When
(1) The director or officer took reasonable steps to become informed about the matter (2) He or she had a rational basis for the decision (3) There was no conflict of interest between the director’s or the officer’s personal interest and that of the corporation
More test answers on https://studyhippo.com/chapter-40-corporate-directors-officers-and-shareholders/
The business judgment rule states that:
directors and officers are immune from liability for exercising poor business judgment in certain circumstances.
More test answers on https://studyhippo.com/business-law-flash-cards/
The Business Judgment Rule
A corporate director or officer will not be liable to the corporation or to its shareholders for honest mistakes of judgment and bad business decisions
More test answers on https://studyhippo.com/chapter-40-corporate-directors-officers-and-shareholders/
An appraiser valued a subsidiary of Signal Co. at between $230 million and $260 million. Six months later, Burmah Oil offered to buy the subsidiary at $480 million, giving Signal only three days to respond. The board of directors accepted the offer without obtaining an updated valuation of the subsidiary or determining if other companies would offer a higher price. Members of the board were sophisticated, with a great deal of experience in the oil industry. A Signal Co. shareholder sued to prevent the sale. Is the Signal board protected by the business judgment rule? (Discussion Question #4)
No, because they violated the duty of care.
More test answers on https://studyhippo.com/bus-250-chapter-34/
For the business judgment rule to apply:
All WRONG
More test answers on https://studyhippo.com/ch-33-34/
Business Judgment Rule (BJR)
rebuttable presumption that the board has acted in accordance with its fiduciary duties 1. In good faith 2. In an informed manner 3. Without a conflict of interest 4. In the honest belief that its actions are in the best interest of the corporation BJR shields directors from personal liability for their business decisions Greater pleading and burden of proof requirements for plaintiffs
More test answers on https://studyhippo.com/duty-of-care-business-judgment-rule/