33. Wally\'s, Inc. announces that it intends to merge with Rayburn, Inc. The Boa

Question

33. Wally's, Inc. announces that it intends to merge with Rayburn, Inc. The Board of Rayburn spends a week searching for other potential buyers. Finding none, they consent to the merger, which is completed in 8 days. When the shareholders of Rayburn sue, claiming the Directors breached their fiduciary duty, a court will likely a. pierce the corporate veil because the Directors failed to protect Rayburn shareholders. b. pierce the corporate veil because the Directors failed to protect Wally's shareholders c. review the purchase price and change it if it is inadequate. d. do nothing because of the business judgment rule.

Explanation / Answer

a.Pierce the corporate veil because the directors failed to protect Rayburn shareholders.

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