Beta

Flashcards Studio

Write, submit, and receive AI feedback with score breakdowns.

Study Settings View Stats

Grades Left 0 this week

AI Graded 0 this week

Tracked Cards 0 saved

Due Review 0 cards

Topic

Question Type

Reader

0 tracked cards Business Associations

A corporation's articles state that its purpose is to operate fitness studios. The corporation later signed a contract to buy software for an online nutrition program related to its fitness business. After receiving the software, the corporation tried to avoid the contract as ultra vires.
Which statement is most accurate under modern corporation law?

Choose the Best Answer

Ultra vires can be raised only by a customer, never by a shareholder or the state. Ultra vires automatically imposes personal liability on every shareholder for the contract. Modern ultra vires doctrine is limited and generally does not let a corporation avoid an otherwise valid completed contract with an outside party solely because the act exceeded a purpose clause. A corporation has no power to conduct any lawful business unless every activity is listed in the articles.

Load another random question

Your Progress

No data Retention

Tracked Cards: 0
Accuracy: No data
Retained: 0

View Detailed Analytics

Difficulty Breakdown

Answer flashcards to build a real score-based difficulty breakdown.

Current Streak 0 Days

Start a streak with this card.

Suggested Decks

View All

Leech Cards

Review

No recent weak flashcards in your saved workbook.

More

Flashcards Studio

Question

Choose the Best Answer

Hello