Book Opener

CHAPTERASSESSMENTAcquiring and Evaluating InformationSchool districts are often structured like corporations.For example, they have boards ofdirectors (school boards) and officers. Thecitizens and parents are similar to the shareholders.Complete the following tasks:15. Research the structure of the school districtyou attend.16. Create a poster showing how it operates.17. Write a one-page paper comparing yourschool district’s operation to that of acorporation.Business JudgmentYvette Ortiz serves as a director of GordinoCorporation, a maker of skin care products.After a short lunch meeting, Yvette made thedecision to buy $1 million dollars worth oflotion from a friend whose company was goingout of business. Unfortunately, the lotion’smain ingredient was determined to be toxic,and Gordino Corporation had to dispose of theentire lot. The shareholders were upset andwanted to file a lawsuit against Yvette.Debate18. Will the business judgment ruleprotect Yvette?19. Why or why not?For the following cases, give your decision andstate a legal principle that applies.20. Josephine Sackman owns 50 shares ofstock in Sinclair Industries, Inc. Sinclairdeclares a dividend on August 18. Josephinesells her shares to Chuck McManis onAugust 19. When the dividend is paid onAugust 25, Chuck claims it belongs to him.Is he correct? Explain you answer.21. Marcia Quonset purchases 200 shares ofcommon stock in Enright International,Inc. She becomes upset when she learnsthat Enright intends to close several plants.What options are available to her, besidesexercising her voting power or bringing asuit against the managers?22. Margie Fairfield, Louis Delaney, and LorettaJacubekz are minority shareholders inShelby Aluminum Corp. To consolidatetheir voting power, they decide to form avoting trust that would last for 25 years.They do not put the deal in writing or tellanyone at corporate headquarters. Havethese shareholders formed a valid, bindingvoting trust? Explain your answer.23. Oberlander Film Processing, Inc. recoverssilver from used photographic negatives.Patricia Robinson, CEO of Oberlander,owns a photography studio that sells usednegatives to Oberlander. Justine Shepherd,a shareholder in Oberlander, discovers thatthe CEO is overcharging the corporationfor the used negatives. After voicing herconcerns, Justine sues to compel Robinsonto return her excessive profits to thecorporation. What type of suit does shebring? What rule will be used to judgeRobinson’s conduct? Why?24. The directors of Bibliotech, Inc. decided toraise funds to save their failing corporationby creating a subsidiary and selling shares.Unknown to investors, all the subsidiary’smoney would go directly into Bibliotech.When the subsidiary fails, will the investorshave a cause of action against Bibliotech?Explain your answer.642 Unit 6: Starting a Business