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NEW QUESTION: 1
Knox, president of Quick Corp., contracted with Tine Office Supplies, InC. to supply Quick's stationery on
customary terms and at a cost less than that charged by any other supplier. Knox later informed Quick's
board of directors that Knox was a majority stockholder in Tine. Quick's contract with Tine is:
A. Valid because the contract is fair to Quick.
B. Void because the disclosure was made after execution of the contract.
C. Valid because of Knox's full disclosure.
D. Void because of Knox's self-dealing.
Answer: A
Explanation:
Choice "d" is correct. If a corporation enters into a contract and a director has a conflict of interest in the
transaction, the contract is voidable unless the director makes full disclosure of all of the facts to the
disinterested directors or the shareholders, who then approve the transaction, or the director can prove
that the transaction was fair to the corporation. The stationery purchase was fair to Quick, since it was
purchased at a below-market price. Thus, the contract is valid. Choice "a" is incorrect. A director's
self-dealing does not automatically make a contract voiD. The contract can be upheld if it was fair. Choice
"b" is incorrect. A director's self-dealing does not automatically make a contract voiD. The contract can be
upheld if it was fair. Choice "c" is incorrect. If a corporation enters into a contract and a director has a
conflict of interest in the transaction, the contract is voidable unless the director makes full disclosure of all
of the facts to the disinterested directors or shareholders, who then approve the transaction, or the
director can prove that the transaction was fair. Mere disclosure after the contract was adopted does not
automatically render the contract valid.
NEW QUESTION: 2
A technician receives a report that a user's workstation is experiencing no network connectivity. The technician investigates and notices the patch cable running from the back of the user's VoIP phone is routed directly under the rolling chair and has been smashes flat over time. Which of the following is the most likely cause of this issue?
A. Electromagnetic interference
B. Excessive collisions
C. Split pairs
D. Cross-talk
Answer: B
NEW QUESTION: 3
A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
NEW QUESTION: 4
A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
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