Asked by Emily Maniccia on Jul 07, 2024
Verified
Holly is an officer of Indelible Inc. The board removes Holly in violation of an employment contract. Indelible may be liable for breach of
A) contract.
B) the business judgment rule.
C) the duty of loyalty.
D) none of the choices.
Breach
A violation or infringement of a legal obligation, contract, or law.
Employment Contract
A legal agreement between an employer and an employee that outlines the terms and conditions of employment.
- Analyze the legal implications of corporate governance decisions, including hiring practices, breach of contracts, and negligence.
Verified Answer
CC
Casey CarrollJul 07, 2024
Final Answer :
A
Explanation :
Indelible Inc. may be liable for breach of contract if they remove Holly in violation of her employment contract. The business judgment rule and the duty of loyalty are principles that apply to the decision-making and fiduciary responsibilities of directors and officers, not to the enforcement of employment contracts.
Learning Objectives
- Analyze the legal implications of corporate governance decisions, including hiring practices, breach of contracts, and negligence.