Question

Jazmine is an officer of New Stage, a theater production company. Without telling any other officers or the board of directors, she decides that New Stage should try to sell gardening tools over the Internet. She makes contracts with suppliers and a Web-based remote order-fulfillment company. The only action that may NOT be taken is:_______.
a. the corporation can file a lawsuit against her.
b. she can file a lawsuit against the corporation if it refuses to reimburse the expenses she incurred to make the contracts.
c. the shareholders can file a lawsuit on behalf of the corporation.
d. the state attorney general may seek an injunction against the transactions or seek a dissolution order from a court.

Answer 1

Answer:

The correct answer is : b. she can file a lawsuit against the corporation if it refuses to reimburse the expenses she incurred to make the contracts.

Explanation:

She acted outside her authority. Also, she exceeded it. What happened was that the company relied on her upon her qualification and skill, but she wasn't formally appointed as the one to make those types of decisions. Jazmine didn't belong to the corporate governing structure so she didn't have the power to act that way.