Under the fairness rule, the court will not interfere with most business decisions as long as the managers do what is fair and legal for the corporation.

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Quizplus · Accepted Answer

No, under the business judgment rule, the court will not interfere with most business decisions. The rule protects managers who act legally, with due care, and in good faith, as long as their decisions are in the best interests of the corporation. The rule results from the common sense belief that based on their education, experience, and knowledge, managers are in the best position to run the corporation. In contrast, shareholders and judges are far removed from the day-to-day operations of the business and should not be allowed to second-guess most management decisions.

Under the Fairness Rule, the Court Will Not Interfere with Most