Case s ummary : P Incorporation, on the behalf of M, signed a subscription agreement to buy the stock of the company CC with the company C, which acted on its behalf. The agreement states that the state court of Delaware shall exercise exclusive jurisdiction over any action concerning the subscription agreement. When the cash reserves of CC depleted due to the financial crisis that further led to liquidation, the company M held CC liable for all the incurred damages. The company C filed a case against the company P for the enforcement of the forum selection clause.
To find: The bindings of the company P to the forum selection clause if the company P had signed the agreement of subscription as the director of M without any other relation to the agreement.
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Chapter 11 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- Purple Corp. reported under GAAP for the year ended 12/31/2024 depreciation expense $45,000 and warranty expense $25,000. During 2024, $5,000 in warranties were serviced, and the remainder is estimated to be serviced over the following 4 years. Under the tax code, depreciation for 2024 would be $60,000. Assuming these are the only differences between GAAP and the tax code, how much would be reported as a deferred tax expense or deferred tax benefit on the income statement for the year ended 12/31/2024 if the future tax rate will be 30%? A A deferred tax expense of $4,500 B A deferred tax benefit of $6,000 C A deferred tax expense of $1,500 D A deferred tax benefit of $1,500arrow_forwardWanna answerarrow_forwardFinancial Accountingarrow_forward
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