Question

BUSINESS LAW 1 (3 Questions)

3 7 . The name for the judicial presumption that the directors of a corporation

make informed business decisions acting in good faith in the corporation’s

best interests is:

a) the business judgment rule

b) the fiduciary rule

c) the acts and omissions rule

d) the covenant of good faith and fair dealing ____

3 8. The employment relationship in which either party — the employer or

the employee — can terminate the employment at any time is called :

a) employment at sufferance

b) employ ment by preference

c) employment subject to notice

d) employment at will ____

3 9 . Under the pretext approach in a case under the whistleblowers’

protection statute, once the employee puts on a p r ima facie case, the

burden of production shifts to the employer to put on evidence that:

a) the employer took the same employment action against other

employees

b) the employer took the employment action for legitimate, nonretaliatory

reasons

c) the employer acted under a mistake of law

d) the employer has an unblemished history of nondiscrimination

and/or affirmative action ____

Answer 1

Please rate

Answer 7
a) The business judgement rule
The business judgement rule is a presumption that directors of a company will take informed decisions for the best interests of the company in good faith
The acts and omissions rule is an irrelevant option as it is concerned about actions of an agent.
The fiduciary rule is concerned about the intentions of a  financial advisor towards their customer.
The Covenant of good faith and fair dealing presumes that parties to a contract will be fair nd honest to each other.

Answer 8
d) employment at will
Employment at will -The employer can terminate the contract with an employee at any time due to any reason except an illegal one . Similarly , employee can leave the job with or without reason at any time .
'At will' is the key element .
Other options don't signify any relationship between the employee and the employer . They are not doctrines.

Answer 9
A whistleblower is a person who informs on a person or an Organization involved in a wrongful or unlawful act /
The pretext approach deals with discrimination based cases resting on 'indirect evidence'. Once the employee has put on a prima facie case , there is a burden of production on the employer to come up with a non discriminatory and legitimate reason for the personnel action . In other words he has to prove that his actions were not motivated by discrimination .

The nearest option is b)  the employer took the employment action for legitimate, non- retaliatory reasons .