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James Gray was the president and managing officer of Peoples Bank and Trust Company. Frank Piecara was an old customer of the bank. Piecara was president of Mirage Construction, Inc. Gray directed Peoples Bank to make a $536,000 loan to a trust managed by Piecara, the loan preceeds to be used to provide working capital for Mirage. Gray obtained a security interest in Mirage's accounts receivable and contract rights for work Mirage was to perform for Rogers Construction. Gray did not perfect the security interest or notify Rogers that it should remit payments for Mirage's work directly to Peoples Bank. Piecara and Mirage defaulted on the loan to Peoples Bank. Gray was sued by his employer for breaching his fiduciary duty. Has Gray complied with the business judgment rule?
Describe beneficial effects to our system of law gained from the principle of stare decisis.
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A principal difficulty with social contract theory is that it requires people to follow the social contact rules - to keep their agreements and not to harm others - even when many others in society refuse to abide by the social contract rules.
"Wealth and honor are what every man desires. But if they have been obtained in violation of moral principles, they must not be kept. Poverty and humble station are what every man dislikes. But if they can be avoided only in violation of moral princi..
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