Exam 60: Legal Issues in Corporate Governance and Business Operations

Gaia wants to establish a Web site for Home & Hearth, a retail business enterprise located in Iowa. To avoid suits against Home & Hearth in other states and foreign countries, Gaia's best option is to

Rea, an officer with Sel-Mart Company, misappropriates the firm's property through fraud. Later, Rea and Sel-Mart agree to a mutual release of claims. Still later, Sel-Mart discovers Rea's fraud and files a suit to recover the misappropriated property. Most likely, the court will rule that Rea

Liu wants to start up a business enterprise, in Maine, and establish a Web site for it. To choose a name that does not infringe on an established business, Liu will most likely need to consider the names of companies

Logan is a director for Metal Masters Company. Ordinarily, Logan owes fiduciary duties only to

Excel Corporation is publicly held. Under the Securities and Exchange Commission's Regulation Fair Disclosure, the dissemination of material nonpublic information about Excel solely through Excel's Web site is

Ilya is an officer with Jetspeed, Inc. Ilya is in a position to acquire assets that would benefit Jetspeed if acquired in its name. Ilya's usurping this opportunity may violate the duty of

Kipling Metals Corporation is publicly held. Under the Securities and Exchange Commission's "notice and access" model rules, Kipling's dissemination of proxy materials to its shareholders by posting them on a Web site is

Puck posts messages in a Quantum Mechanics, Inc., chat room stating that "Quantum's stock is headed for $20." Over the following six months, the price of Quantum's stock declines significantly. Puck's messages are

Ren is a shareholder of Star Corporation. Ren wants Star to include in its proxy materials a proposal to amend the firm's bylaws to require it to publish the names of shareholder-nominated candidates for positions on the board of directors. One argument in opposition to such a requirement is that it could lead to

Lex is a shareholder of Master Corporation. Lex wants Master to include in its proxy materials a proposal to amend the firm's bylaws to require it to publish the names of shareholder-nominated candidates for director positions. One argument in favor of such a requirement is that it could lead to