Business Law Day 2

(note: links don’t work. This is a sample from my Moodle Course)

Business Corporation

  • Pre-Class Activites:

  • Complete Task #6 and then reply to the discussion issues posed.

  • In-Class Activities:

  • Task #7: Legal Disaster Strikes

  • The corporation has filed its Articles of Incorporation with the appropriate office. You are awaiting confirmation from the State Corporation Commission (SCC) about whether everything was done correctly. An officer of the corporation (the COO), has found an office building to lease at a rock bottom price. The COO does not consult the Board or any other Officers and goes ahead and signs the lease on behalf of the Corporation. He also writes a check off his personal account for the first month’s rent.  Later, the other members learn that the building is infested with rats and mold and cannot be used for their intended purpose- as the corporate headquarters. Can the company get out of the lease? Did the COO bind the corporation by signing the lease agreement? What personal liability does the COO have? Is it his fault?  How can the company get out of this?

    To figure out this problem watch and read the following resources along with any other resources you find:

    Read: LBS  pages 354-370 AND watch the following videos

Task #8 Assessment

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