Q1: Read the following hypothetical cases and answer all questions based on the US law: (1 mark)
AMC, Inc.’s board of directors have appointed Mr. Ahmed to be the Chief Financial Officer (CFO) of the corporation. The directors declared this appointment during a welcoming corporate dinner in AMC, Inc.’s head office. Mr. Ahmed signed the employment contract on December 15th, 2015. According to the employment contract, the employment takes effect in January 1st 2016. . However, In December 18th, Mr. Ahmed attended a meeting with HP Company and signed a service contract, on behalf on AMC, Inc., for 2 million SR.
From your point of view, discuss whether Ahmad’s act was legal or illegal. Can third party rely on the fact that he is representing the company? Could the court consider this transaction and enforce it? In which cases this transaction could be considered legally binding?
You can create and illustrate your own scenario using the facts mentioned above. (You can add facts).
Support your answer with rules from officers’ role and agency.
Q2: Choose the correct answer (1 mark).
Which of the following is generally false regarding the surviving entity in a merger situation?*
The surviving entity remains a single corporation.
The shareholders of the surviving entity must amend its articles of incorporation according to the specific conditions of the merger.
The surviving entity does not become liable for debts of the absorbed corporation.
The surviving entity obtains the absorbed corporation's assets, rights, powers, and privileges.
_______________ is an agency formed when individual misrepresents himself/herself as agent for another party, and principal accepts the unauthorized act
Expressed agency.
Power of Attorney.
Agency By Estoppel.
Agency By Ratification
Q3: Answer True or False and right the correct answer if you believe the sentence is false. (1 mark)
In general, individual who hires independent contractor is not liable for independent contractor’s tortious actions.
Agency can be terminated only by operation of law.
LAW Assignment 4
العرض العادي
