Can hula be held liable for the injury

Assignment Help Business Law and Ethics

Reference no: EM133192516

Case: Mario Bonsetti and Rico Sanchez incorporated Gnarly Vulcan Gear, Inc. (GVG), to manufacture windsurfing equipment. Bonsetti owned 60 percent of the corporation's stock, and Sanchez owned 40 percent. Both men served on the board of directors. Hula Boards, Inc., owned solely by Mai Jin Li, made a public offer to buy GVG stock. Hula offered 30 percent more than the market price per share for the stock, and Bonsetti and Sanchez each sold 20 percent of their stock to Hula. Jin Li became the third member of the GVG board of directors. An irreconcilable dispute soon arose between Bonsetti and Sanchez over design modifications of their popular Baked Chameleon board. Despite Bonsetti's dissent, Sanchez and Jin Li voted to merge GVG with Hula Boards under the latter name, Gnarly Vulcan Gear was dissolved, and production of the Baked Chameleon ceased. Using the information presented in the chapter, answer the following questions.

Question 1: What rights does Bonsetti have (in most states) as a minority shareholder dissenting to the merger of GVG and Hula Boards?

Question 2: Could the parties have used a short-form merger procedure in this situation? Why or why not?

Question 3: What is the term used for Hula's offer to purchase GVG stock?

Question 4: Suppose that after the merger, a person who was injured on the Baked Chameleon board sued Hula (the surviving corporation). Can Hula be held liable for the injury? Why or why not

Reference no: EM133192516

Questions Cloud

Organizational theory for dissemination and implementation : Capella University-Community Collaboration: Practices of Effective Collaboration as Reported by Three Urban Faith-Based Social Service Programs by Robin K. Roge

Analyze whether jack has a negligence claim : Analyze whether Jack has a negligence claim against Client A - Identify any potential defenses that Client A may raise in response to Jack's negligence claim

Why biogeochemical cycles important in environmental science : Why is an understanding of biogeochemical cycles important in environmental science? Explain your answer, using two examples.

How coronary artery disease develops in the human body : Explain how coronary artery disease develops in the human body. Explain what treatment options exist if steps to prevent the disease fail

Can hula be held liable for the injury : Suppose that after the merger, a person who was injured on the Baked Chameleon board sued Hula (the surviving corporation). Can Hula be held liable for the

Discussion on sexual orientation : Ashford University-After reading and reviewing the Learn material, reflect upon what you have learned and include pertinent aspects of the material in your resp

Reflect on the concept of climate justice : Reflect on what you have watched and read keeping the concept of Climate Justice in your mind. Describe the policies and philosophies you feel Cayman adopt

Discuss the concepts of learned optimism : Discuss the concepts of learned optimism, hardiness training, and stress management and how they are related to coping

What is source of law that governs the subsequent remedies : Kean University - Eddie has taken thousands of dollars from Betty's business. As a result, Betty has suffered. Did Eddie violate a criminal law, a civil law

User Account

All Pages