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Corp questions 3.docx - Assume Marge and Homer form a...

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Assume Marge and Homer form a corporation and each own 50% of theoutstanding shares. The board of directors is composed of just the two ofthem. Marge wishes to obtain a personal loan from her bank for $100,000, butthe bank requires someone to co-sign the promissory note. Marge co-signsthe note in the name of the corporation and signs as the president. LaterMarge defaults on the note, and the bank sues the corporation for payment.Is Vircon liable to Marge's bank for the $100,000 loan? Pleaseexclude the concept of ultra vires from your answer.
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Term
Spring
Professor
GUERIN
Tags
Business Law, Corporation, Default, Ostensible Authority

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