1. AthleticElite Inc. invested a great deal of time and money in developing a new athletic shoe. The corporation conducted numerous surveys and marketing studies and consulted with scientists and elite runners. Unfortunately, the week before the corporation released its new shoe, Nike Inc. released its new shoe, which proved to be a great success. AthleticElite's stock price has plunged. Discuss whether the directors have any liability for their decision.

2. Using the facts in Question 1, would your answer be different if the directors' decision to develop a new athletic shoe was based on a review of various running magazines and websites? Discuss.

3. Stratego Inc. is a small corporation with nine principals, all of whom are officers, directors, and shareholders of the corporation. The corporation has been so busy trying to turn a profit that it has not held any meetings or elections for the past two years. The company owes $50,000 to a creditor but has only $35,000 in its accounts. Discuss whether the creditor may recover from any of the individuals involved in Stratego.