What are sayres rights

Assignment Help Business Law and Ethics
Reference no: EM131389546

Sayre learned that Adams, Boone, and Chase were planning to form a corporation for the purpose of manufacturing and marketing a line of novelties to wholesale outlets. Sayre had patented a self-locking gas tank cap but lacked the financial backing to market it profitably. He negotiated with Adams, Boone, and Chase, who agreed to purchase the patent rights for $5,000 in cash and two hundred shares of $100 par value preferred stock in a corporation to be formed.

The corporation was formed and Sayre's stock issued to him, but the corporation has refused to make the cash payment. It has also refused to declare dividends, although the business has been very profitable because of Sayre's patent and has a substantial earned surplus with a large cash balance on hand.

It is selling the remainder of the originally authorized issue of preferred shares, ignoring Sayre's demand to purchase a proportionate number of these shares. What are Sayre's rights, if any?

Reference no: EM131389546

Questions Cloud

Does rachel have any liability to the corporation : Does Rachel have any liability to the corporation or its creditors in connection with the corporation's reacquisition of the one hundred shares?
List you departure-airport and destination-airport : List you departure-airport and destination-airport. What are the two fares?  What is the difference between the two fares?  Why do you think there is a difference in the fares?
What is the maximum lawful dividend that may be paid : Almega Corporation, organized under the laws of State S, has outstanding twenty thousand shares of $100 par value nonvoting preferred stock calling for noncumulative dividends of $5 per year;- What is the maximum lawful dividend that may be paid to..
Conduct a competitive strategy analysis on the product : Conduct a competitive strategy analysis on the product or service selected using Porter's Generic Competitive Strategies (Cost Leadership Strategy, Differentiation, and Focus).
What are sayres rights : It is selling the remainder of the originally authorized issue of preferred shares, ignoring Sayre's demand to purchase a proportionate number of these shares. What are Sayre's rights, if any?
Describe about the planning the dblc : The development of a database requires thorough methodology that ensures quality within the solution. Imagine you have been contracted to develop a finance database that will help an organization track monthly expenditures by departments. Using th..
Explain were the dividends wrongfully paid : Wood did not allege that the present creditors were also creditors when the dividends were paid. Were the dividends wrongfully paid? Explain.
Deciding on possible global markets to enter : What factors do companies consider when deciding on possible global markets to enter? What is sustainable marketing? Explain how the sustainable marketing concept differs from the marketing concept and the societal marketing concept?
Analyze this case by determining the factual issues : This case is a perfect instance of what we discussed previously in this chapter when we said that the factual issues can be controversial.

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Legal environment of business caselet

The assignment in Law deals with the topic "Legal Environment of Business". A case study about Mary, a newly joined employee who is working in the USA and Europe. She faces few issues at her work place in Europe and tries to talk to her manager who s..

  Business ethics & legal issues caselet

This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws. These laws are concerned with those large corporations which have a majority of market share, mergers and acquisitions.

  Questions on business law and ethics

Examples of securities that are exempted from the registration provisions of the 1933 Act and involving misstatement of material facts in a prospectus.

  Discuss the doctrine of ratification of pre-incorporation

With the aid of a decided cases, discuss the doctrine of ratification of pre-incorporation contract.

  Discuss the extent of phoenixing activity

It has been estimated that about 6,000 phoenix companies operate in Australia, costing government and the community hundreds of millions of dollars per year and impacting on individuals.

  Application of law to facts

Company Law, Application of Law to Facts and Conclusion.

  Question on business law and ethics

This assignment related to business law.

  Questions on business law

Answer all the questions under business law.

  Iidentify the issue raised by the facts

Iidentify the issue(s) raised by the facts, identify the relevant legal principles, apply the relevant legal principles to the facts, reach a conclusion.

  Evaluation of software development

Prepare a report and present an evaluation of the subsequent methodologies for software development in terms of cost, resources and time.

  Business value and ethics

Business value and ethics,  Bart agrees to put Sam's Super Bowl champion-ship autographed football in his sports store to sell for $1,500. Sam agrees to pay Bart a 15% commission for selling the ball. If Joe comes in the sports store and offers Bart ..

  Explain what is meant by income by ordinary concepts

Advise what tax consequences arise in respect of the payments.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd