19)

Chestnut Electronics, Inc. transfers many of its major assets to its shareholders for far less than the fair market value. Chestnut is engaged in _______, which can lead to corporate veil piercing because it _______.

Multiple Choice

• Looting; evades an existing obligation

• Alter ego; creates a significant domination

• Thin capitalization; defrauds creditors of the corporation

• Thin capitalization; circumvents a statutory duty

• Looting; defrauds creditors of the corporation

20)

The Due Process Clause of the Constitution of the United States requires that a _______

Multiple Choice

• state have a legitimate interest in regulating a foreign corporation.

• state regulation of a foreign corporation be the least burdensome means of promoting a state interest.

• foreign corporation have sufficient contacts with a state before a state may exercise jurisdiction over the corporation.

• states interest in regulating an activity outweighs the regulations burden on interstate commerce.