Roger is a director of the RST Corporation,which is engaged in the business of creating and marketing toys and games.A proposal is made to the board to manufacture and market a toy bird that really flies.Market surveys have been done to indicate that the toy would be a good seller,and engineering studies have been done testing the feasibility of such a product.Roger reviews this information and votes in favor of producing this new toy.The vote was 7 to 4 in favor.RST produces and markets this new toy bird,but sales are very slow.After several years of losing money,RST discontinues this toy.Lynn,a shareholder of RST,thinks the toy bird venture was a waste of time and money.In fact,she thinks the idea was so bad,that she sues Roger for breach of his fiduciary duty of due care in making the decision to proceed with the bird.Discuss the general standards of due care of a director of a corporation,and determine whether Roger is liable in this situation.

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The Answer of Roger is a director of the RST Corporation,which is engaged in the business of creating and marketing toys and games.A proposal is made to the board to manufacture and market a toy bird that really flies.Market surveys have been done to indicate that the toy would be a good seller,and engineering studies have been done testing the feasibility of such a product.Roger reviews this information and votes in favor of producing this new toy.The vote was 7 to 4 in favor.RST produces and markets this new toy bird,but sales are very slow.After several years of losing money,RST discontinues this toy.Lynn,a shareholder of RST,thinks the toy bird venture was a waste of time and money.In fact,she thinks the idea was so bad,that she sues Roger for breach of his fiduciary duty of due care in making the decision to proceed with the bird.Discuss the general standards of due care of a director of a corporation,and determine whether Roger is liable in this situation.

Roger Is a Director of the RST Corporation,which Is Engaged