Case s ummary: Person CG was the president of a company L. He also owned a family business G that made syrups for soft drinks. The company later became insolvent. Person CG later contracted with company P. The board of company L was unaware that person CG was using their capitals, personnel, and facilities for his personal benefits. The employees of company L were instructed by person CG to make a concentrate that was sent to company G that is owned by a person CG. Company G sold its products to P and L too. Company L filed a suit against person CG in the state court seeking the product stock and accounting of company P. To find: The decision of the court when the board of directors of company L approved the use of the personnel and equipment of company G.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 3CT

Summary Introduction

Case s ummary: Person CG was the president of a company L. He also owned a family business G that made syrups for soft drinks. The company later became insolvent. Person CG later contracted with company P. The board of company L was unaware that person CG was using their capitals, personnel, and facilities for his personal benefits. The employees of company L were instructed by person CG to make a concentrate that was sent to company G that is owned by a person CG. Company G sold its products to P and L too. Company L filed a suit against person CG in the state court seeking the product stock and accounting of company P.

To find: The decision of the court when the board of directors of company L approved the use of the personnel and equipment of company G.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Zuhair, section associate in Almadar company has found the fraud done by one of his colleagues in his section. In this situation, which of the following option is appropriated initial action of Mr. Zuhair to do if he does whistleblowing? a. Discuss the issue with the family as they may be affected b. Leave the company c. Approach immediate manager and make the manager aware of the issue d. Go outside the company and discuss with the media

Ellen, a citizen of California, was seriously injured in an automobile accident while driving in California. She was injured due to the negligence of Sara, a citizen of Arizona, who ran a red light at an intersection. Ellen is seeking 1.5 million in damages. 1. Where may Ellen bring her suit? 2. Discuss the process Ellen would have to follow in order to fully litigate her claim. 3. If Sara is granted summary judgment at the trial court level, what may Ellen do next? Explain her options.

Stephen Glass made himself infamous as a dishonest journalist by fabricating material for more than forty articles for The New Republic and other publications. At the time, he was a law student at Georgetown University. Once suspicions were aroused, Glass tried to avoid detection. Later, Glass applied for admission to the California bar. The California Supreme Court denied his application, citing “numerous instances of dishonesty” during his “rehabilitation” following the exposure of his misdeeds. How do these circumstances underscore the importance of ethics?