Vision Optical Company and Wide Eyes Open,Inc.decide to combine.Xavier,a Wide Eyes shareholder,is dissatisfied with the price that he will receive for his stock.In the absence of fraud or other illegal conduct,Xavier's exclusive remedy is to
A)exercise an appraisal right.
B)file a suit to delay the process.
C)refuse to agree to the deal,which cannot then proceed.
D)urge other shareholders to insist on a higher price.

Question

Quizplus · Accepted Answer

Xavier's exclusive remedy in this situation, absent any fraud or illegal conduct, is to exercise an appraisal right. This would allow him to have an independent valuator determine the fair value of his shares and receive payment for that amount. Refusing to agree to the deal or urging other shareholders to insist on a higher price are not viable options as the decision to combine has already been made. Filing a suit to delay the process would also likely be unsuccessful unless there is evidence of fraud or illegal conduct.