ABC Corporation is incorporated in state X.Under the laws of state X,no corporation is allowed to sell insurance contracts without first obtaining a license from the state.ABC sells an insurance contract,but neither ABC nor its directors,officers,or employees have the required license.ABC's actions are best described as:

Question

Quizplus · Accepted Answer

Ultra vires acts refer to actions taken by a corporation that are beyond its legal authority or powers. In this case, ABC Corporation is selling insurance contracts without the required license, which is a violation of state X laws. Therefore, this is an example of an ultra vires act.

ABC Corporation Is Incorporated in State X