In the late 1960s,a shareholder of the company that owned the Chicago Cubs baseball team sued the company because the directors refused to install lights in Wrigley Field.The court decided that the directors
A)had a rational purpose for not installing lights and were not liable for doing anything improper.
B)were not protected by the business judgment rule.
C)had not acted with any rational purpose and were liable to its shareholders for damages caused by their actions.
D)had the right to make decisions for the team without any concern for the desires of the shareholders.

Question

Quizplus · Accepted Answer

The court decided that the directors had a rational purpose for not installing lights (to preserve the character and charm of Wrigley Field) and therefore were not liable for doing anything improper. This decision upheld the business judgment rule, which grants directors a degree of deference in making decisions for the corporation.

In the Late 1960s,a Shareholder of the Company That Owned