August 10, 1993, Decided OPINION BY: FROST This appeal from a summary judgment requires us to determine whether a real estate seller's agent owes a fiduciary duty to a prospective purchaser when the seller's agent and the purchaser's real estate agent work for the same real estate broker. The district court held that there is no such fiduciary duty, and we agree.The material facts are undisputed. Plaintiff-appellant Robert Moser, an individual from California interested in purchasing investment
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and gives Bob the loan. Unfortunately, when Bob does a poor job and his airline goes bankrupt. When Bob defaults on the loan, the bank is only able to recover $150 million. The shareholders bring a derivative lawsuit against Joan for breach of her fiduciary duty of care. How likely is the derivative action against Joan to succeed? Rule: The standard by which decisions of a board of directors of a business are to be reviewed by the courts is known as the business judgment rule. The business
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for the loan, and the board accepts her recommendation. Bob’s airline falls into bankruptcy, Bob defaults on the loan, and the bank is only able to recover $150 million. The shareholders bring a derivative lawsuit against Joan for breach of her fiduciary duty of care. They claim that her research into Bob was deficient, and based on Bob’s background and the state of the airline industry Joan should have known that the venture was not likely to succeed. Is Joan’s conduct protected by the business
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RULES OF PROFESSIONAL CONDUCT TABLE OF CONTENTS FOREWORD....................................................................................................................... 3 APPLICATION OF THE RULES OF PROFESSIONAL CONDUCT ................................... 8 INTERPRETATION OF THE RULES OF PROFESSIONAL CONDUCT ...........................11 100 - GENERAL .................................................................................................................12 101 Compliance with Bylaws
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Introduction The case of Francis W. Gagnon v. Joan G. Coombs was tried in the Appeals Court of Massachusetts in 1995. Francis Gagnon and his wife, an elderly couple, owned a farm in Shelburne Massachusetts and land in Hillsborough, New Hampshire. They had two children, Joan Coombs and Frank Gagnon. Joan suggested that her parents sign powers of attorney appointing her as their agent. Frank was upset when he found out about the POA and convinced his father to revoke the power. Francis revoked
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section 267 defines the limitation to the deductibty of losses on sales and exchanges between related parties. Related parties means:- 1. A Fiduciary or grantor of a trust. 2. Members of a family. 3. A beneficiary and a fiduciary of any trust. 4. A grantor of two trusts who is also the fiduciary of both the trusts. 5. A beneficiary of one trust and fiduciary of another trust, and grantor of both the trusts. 6. Corporations being members of a same controlled group. 7. It says that loss from the
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Enron Sharon R. Duncombe Professor Jamila Harris Business Law I – LEG 100 May 2, 2010 1) Describe how Enron could have been structured differently to avoid such activities. One of the reasons why the corporate governance system failed at Enron was because of the lack of good communication between the Board of Directors (BOD) and Top Management in Enron’s affairs. Various committees of the BOD were not doing your job, by not overseeing effectively the action’s of the company. “A good
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Duties of promoter The promoters take possession of important position and responsibility towards the incorporation of a company. Promoters stand in fiduciary relationship with the company they are promoting. The fiduciary obligations of a promoter will arise automatically once he or she becomes the promoter of the company. There are some major duties of the promoter imposed by the court. First of all is acting bona fine. ‘Bona fide’ is originally a Latin word which means doing and presenting
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DIRECTOR’S DUTIES * Director’s fiduciary duties: Hospital products ltd v united states surgical corp “the fiduciary undertakes or agrees to act for or on behalf of or in the interests of another person in the exercise of a power or discretion which will affect the interests of that other person in a legal or practicable sense.” * Bristol & West building society v Mothew – Duty of loyalty – the principal is entitled to the single-minded loyalty of his fiduciary. “this core liability has several
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Section 42 provides that each member stands in a fiduciary relationship to the corporation. The fiduciary duties of a member entail that a member: * must act honestly and in good faith towards the close corporation * must avoid any material conflict between his own interests and those of the corporation * may not derive unwarranted personal economic benefit from the corporation * may not compete with its business activities Where a member fails to give notice of the nature and extent
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