R8

Question 1

Failing Company Exception

Answer 1

If the acquired firm is in danger of becoming insolvent and no other purchasers are interest in acquiring it, a merger can be lawful even if the effect is to lessen competition.

Question 2

Document of Title

Answer 2

Any document in the regular course o business that proves that the person in possession has title to or is entitled to receive the goods.

Question 3

Bill of Lading

Answer 3

Doc of title that proves a common carrier has received

Question 4

Words of Negotiability

Answer 4

Must be made out to the bearer, order of the consignee, or person delivery should be made to

Question 5

Tender Offer

Answer 5

A general invitation by a bidder to the shareholders of a target company to tender their shares to the bidder at a specified price during a specified time.

Question 6

Requirements to obtain a corporate charter

Answer 6

Include in AOC:

• Name of the corp
• Provision for the authorization of voting stock
• Names of the incorporators
• Name an address of the registered agent

Question 7

Debt Securities are

Answer 7

Bonds

Question 8

Derivative Action

Answer 8

An action by a stockholder in the name of the corporation to recover damages or to seek some other remedy on behalf of the corporation when the corporation does not enforce its own rights.

Question 9

Ultra Vires Act

Answer 9

An act outside of a director’s or an officer’s corp of authority and thus is a breach of duty to the corporation