Oxy Corp and Oya Paka Discussions
Q1: Oxy Corp. is negotiating with the Wick Construction Co.
for the renovation of the Oxy corporate headquarters. Wick, the owner of the
Wick Construction Co. is also one of the five members of the board of directors
of Oxy. The contract terms are standard for this type of contract. Wick has
previously informed two of the other directors of his interest in the
construction company. Oxy’s board approves the contract by a three-to-two vote,
with Wick Voting with the majority. Discuss whether this contract is binding on
the corporation.
Q2: Oya Paka and two business associates formed a
corporation called Paka Corp. for the purpose of selling computer services.
Oya, who owned 50 percent of the corporate shares, served as the corporation’s
president. Oya wished to obtain a personal loan from her bank for $250,000, but
the bank required the note to be cosigned by a third party. Oya cosigned the
note in the name of the corporation. Later, Oya defaulted on the note, and the
bank sued the corporation for payment. The corporation asserted, as a defense,
that Oya had exceeded her authority when she cosigned the note on behalf of the
corporation. Had she? Explain.
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
