Solved

Albert Is the Principal Shareholder of a Large Investment Company

Question 12

Multiple Choice

Albert is the principal shareholder of a large investment company and holds 45 percent of its common shares,which are valued at $500 000.00.Recently,Albert's company invested heavily in a gold mining company,which fraudulently represented finding and owning a new gold deposit in northern Canada.Albert's company lost a substantial amount of money,with the result that the value of Albert's common shares dropped to $25 000.00.Albert now launches a lawsuit against the gold mining company for the loss in value of his shares.In this case


A) Albert will be entitled to a quantum meruit claim against the gold mining company.
B) Albert will recover his loss because his cause of action is in fraud or deceit.
C) Albert will not recover his loss because he has no claim for damages for a wrong done to his company.
D) Albert will recover his loss because the court will lift the corporate veil of the gold mining company.
E) Albert will recover his loss because the court will force the gold mining company to insure his shares.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents