Answear

14) The directors held their last meeting on December 31 at 4:30 p.m., and it was conducted more like a party than a usual meeting. A director was negligent in signing a promissory note, which cost the corporation $15,000; furthermore, the director was in breach of his fiduciary duty because the note was paid to a corporation in which he had an interest. Which of the following is true?
A) A shareholder could commence an action on behalf of the corporation against the director if he gets the court's permission to do so.
B) The proper plaintiffs in the action are the shareholders, under the relief from oppression provision.
C) If the corporation failed to start an action through its authorized agents (e.g., its directors), no action could be taken because a corporation is merely a legal concept and must act through its authorized agents.
D) The shareholders could force the director to pay the $15,000 to the corporation by insisting on their "pre-emptive rights."
E) The shareholders could dissent to this act and force the corporation to buy them out at fair market value.

15) Which of the following is false with regard to the nature of mortgages?
A) An owner of property who has granted a mortgage can grant second and third mortgages referred to as "legal" mortgages because the owner has granted to them his legal interests.
B) Unlike an agreement for sale, under which an owner retains title to his property until the purchaser makes all the payments, a mortgage is a document by which the owner conveys title to a lender.
C) A mortgage that transfers the fee simple estate to a mortgagee is called a "legal" mortgage.
D) A second mortgage is referred to as an equitable mortgage because it is the equity of redemption that is transferred to the mortgagee as security.
E) The land titles system of land registration provides that the mortgagee does not show up as the registered owner on the state of title certificate but merely as the holder of a