A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation itself fails to bring the lawsuit is known as a ________.

Question

Quizplus · Accepted Answer

The scenario described is that of a derivative action, where a shareholder sues an offending party on behalf of the corporation when the corporation itself fails to take action. A notice of the shareholder is not a legal concept, and a class action suit involves multiple plaintiffs seeking relief, not necessarily on behalf of a corporation. Contract action is a broad term that includes any legal action related to a breach of contract.

A Lawsuit a Shareholder Brings Against an Offending Party on Behalf