Arianna is an officer of New Stage, a theater production company. Without asking any other officers, she decides that New Stage should sell gardening tools over the Internet. She makes contracts with suppliers and an order-fulfillment company. The only action that may NOT be taken is that:

a. she can file a lawsuit against the corporation if it refuses to reimburse her for her expenses.

b. shareholders can files a lawsuit on behalf of the corporation.

c. the corporation can file a lawsuit against her.

Question

Business

Ireland Mills

21 May, 03:23

Arianna is an officer of New Stage, a theater production company. Without asking any other officers, she decides that New Stage should sell gardening tools over the Internet. She makes contracts with suppliers and an order-fulfillment company. The only action that may NOT be taken is that:

a. she can file a lawsuit against the corporation if it refuses to reimburse her for her expenses.

b. shareholders can files a lawsuit on behalf of the corporation.

c. the corporation can file a lawsuit against her.

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Answers (1)

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Josephine Lambert · Answer 1

The only action that cannot be take is the corporation can file a lawsuit against her.

c. the corporation can file a lawsuit against her.

Explanation:

Here Arianna cannot file a lawsuit against the compnay because the company is not at fault but Arianna is. She committed an Ultra Vires act and hence cannot file a lawsuit against the company for a reimbursement. The company didn't had any idea about her actions and she didn't inform.

The key is to have the documentation demonstrating the individual was liable for the damage or harms that happened. Along these lines, truly, you can truly sue for about any explanation if your case meets the best possible criteria.