Fact Pattern 31-6 Sweet Inc. acquires all of the assets of Tart Inc . by direct purchase.
Refer to Fact Pattern 31-6. Upton is a Tart shareholder who does not approve of the deal. In most states, Upton can
A) reverse the deal so that Tart acquires all of the assets of Sweet.
B) insist that the companies carry out their corporate purposes.
C) demand appraisal rights.
D) require the parties to cancel the deal.

Question

Quizplus · Accepted Answer

In most states, shareholders who do not approve of a significant transaction like an asset acquisition have the right to demand appraisal rights, which allows them to receive payment for their shares at a fair value.