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Distanet Corp. is a competitor of Telenex Corp. in the personal computer market. After carefully examining past and future price and sales data, and after

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Distanet Corp. is a competitor of Telenex Corp. in the personal computer market. After carefully examining past and future price and sales data, and after consulting an economist and an accountant, the Board of Directors of Distanet voted to reduce the price of their companys computers, believing in good faith, that by reducing the price of their product, Distanet could compete more successfully with Telenex. In fact, however, Distanet lost money as a result of the plan. Sueyou, a stockholder of Distanet, brings a lawsuit against the Board of Directors of Distanet, seeking to hold them liable for the failure of the plan, and the losses experienced by the corporation as a result of the implementation of the plan. Will Sueyou succeed in the suit against the members of the Board of Directors? Yes, this was a plan that didn't work out, and the Board of Directors will have to pay Yes, members of the Board of Directors of a corporation are always individually liable whenever the corporation Ioses money No, under the Business Judgment Rule, the members of the Board of Directors will not be held liable in this case No, members of the Board of Directors of a corporation can never be held liable, no matter how misguided or ill informed the decision was

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