What does it mean that an agreement is void because it violates public policy? a. Explain the meaning of "public policy" in this context. b. List the most common forms of agreements that violate public policy
a. Judicially declared public policy is very broad in scope, it often being said that agreements having "a tendency to be injurious to the public or public good" are contrary to public policy.
b. Agreements that violate public policy include those that contain unreasonable restraints of trade or exculpatory clauses, unconscionable contracts, contracts involving tortious conduct, contracts that tend to corrupt public officials, contracts that obstruct the administration of justice, or contracts that impair the legislative process or family relationships.
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Explain two different areas of boundary spanning and what they are used for.
What will be an ideal response?
Which of the following is true of an auditor of a corporation?
A. The auditor must be an independent certified public accountant. B. The auditor cannot use information about the corporation from third parties. C. The auditor cannot inspect the corporation's real property unless he or she is closely associated with the company. D. The auditor must provide a qualified opinion wherever possible, since it helps the company in its business practices.
Which of the following not-for-profit organizations is most likely to be tax-exempt under IRC Sec. 501(c)(3)?
A. Regional Association of Tree Trimmers. B. Survivors of Breast Cancer Club. C. Beta Kappa Alpha Sorority. D. Peaceful Dreams Cemetery Association.
Which one of these best exemplifies "milking the property"?
A) A firm paying a premium to acquire a competitor B) A firm demanding a premium to be acquired without a proxy fight C) A firm with high financial distress paying additional dividends D) An all-equity firm repurchasing shares E) A firm with high financial distress using expected dividends to repay debt