Question
A Delaware corporation named Swoosh Sneakers sells running shoes all over the United States. Mike is the president of Swoosh Sneakers. One day Mike met
A Delaware corporation named Swoosh Sneakers sells running shoes all over the United States. Mike is the president of Swoosh Sneakers. One day Mike met with Janet who is the president of another corporation named Lace & Beyond, which sells shoelaces of all sorts along with belts and other related accessories. In the meeting, Janet stated that there is good synergy between the two companies and asked if Swoosh Sneakers would be interested in exploring the possibility of a merger between the two companies. Mike called Janet a few days later and offered to buy Lace & Beyond for his family business. Mike's family runs a leather shoe company in California and Mike thought Lace & Beyond would be a good addition to his family business. The acquisition was successfully completed. Following the acquisition, Mike made his family business the exclusive supplier of shoelaces to Swoosh Sneakers. Mike's family business began to thrive financially. Jane, the chairman of the board and majority shareholder of Swoosh Sneakers was very upset to learn about this development. She came to you for advice. Does she have any recourse? On what grounds can she pursue a claim against Mike? What would be the possible defenses against her claim?
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