Bar Exam (US) Corporations: Question below is based on the following fact situation. Legal Groun...

Question

Question below is based on the following fact situation.

Legal Grounds is a coffee company in the state of Springfield. It has 19 stores in the state and employs out-of-work attorneys who serve coffee while offering legal advice. Legal Grounds provides malpractice insurance for the attorneys who work there, and local law firms know that, by going to Legal Grounds, they can kill two birds with one stone: get some great coffee and find theretofore unnoticed legal talent. Legal Grounds also sells T-shirts, coffee mugs, and leather portfolios embossed with the Legal Grounds logo.

Legal Grounds has five members on its board of directors.

For the purposes of this question only, assume that Legal Grounds uses so much coffee that coffee grinders, even industrialstrength ones, must be replaced at least every six months. The Corporate Coffee Grinder has therefore purchased coffee grinders for Legal Grounds on several previous occasions without objection from the board. However, after reviewing Legal Grounds' expenditures for 1999, the board objects to the Corporate Coffee Grinder's prior purchases. May it object?

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    Yes, because the Corporate Coffee Grinder has never asked for approval before buying the coffee grinders.
  2. B
    Correct Answer
    Yes, if the Corporate Coffee Grinder is contracting on behalf of the corporation.
  3. C
    Correct Answer
    No, because the board has never previously objected.
  4. D
    Correct Answer
    No, if the Corporate Coffee Grinder is an attorney.
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