What is self-dealing?
What will be an ideal response?
Under the Revised Model Business Corporations Act (RMBCA), a contract or transaction with a corporate director or officer is voidable by the corporation if it is unfair to the corporation. Contracts of a corporation to purchase property from, sell property to, or make loans to corporate directors or officers where the directors or officers have not disclosed their interest in the transaction are often voided under this standard. In the alternative, the corporation can affirm the contract and recover any profits from the self-dealing employee. Contracts or transactions with corporate directors or officers are enforceable if their interest in the transaction has been disclosed to the corporation, and the disinterested directors or the shareholders have approved the transaction.
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The motive for developing and improving _____ is not monetary, but rather the satisfaction of solving programming problems and the recognition of one's contribution.
A. proprietary software B. open source software C. multimedia software D. packaged software
GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $72,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a:
A. Credit to Unearned Revenue for $72,000. B. Credit to Accounts Receivable for $72,000. C. Credit to Cash for $72,000. D. Debit to Unearned Revenue for $72,000. E. Debit to Accounts Receivable for $72,000.
Sears reports that most of its ethics assist line calls are about how to solve a human resources issue. Which of the following is TRUE of these calls?
a. They are all referred to the appropriate company HR department. b. They are refused politely. c. They are welcome, but they are not part of the original intention of ethics assist lines. d. These calls are considered the highest priority for ethics assist lines.
Tu-thumbs buys a used paint sprayer from the local paint store. The sprayer had a large sign on it which said "AS IS." The dealer made no promises or statements concerning the performance of the paint sprayer. When Tu-thumbs attempts to spray paint his house, the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power, paint is sprayed
all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day. Tu-thumbs sues the dealership. Who wins? A) Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. B) Tu-thumbs wins; he can recover on the basis of express warranties. C) Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer. D) Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen.