794 UNIT EIGHT BUSINESS ORGANIZATIONs QUESTIONS AND CASE PROBLEM 40-1. Conflicts of Interest Oxy Corp. is busit negotiating with the Wick Construction own Co. for the renovation of the Oxy corporate headquar stoc ters. Wick, the owner of the Wick Construction Co., is Stev also one of the five members of Oxy's board of directors. sion The contract terms are standard for this type of contract. the Wick has previously informed two of the other directors $7 2of his interest in the construction company. Oxy's board ha approves the contract by a three-to-two vote, with Wick w '.y voting with the majority. Discuss, whether this contract m is binding on the corporation.tiro :40-2 QUESTION WITH SAMPLE ANSWER: Liability of Directors. 3 AstroStar, Inc., has approximately five hun