Nordex Corporation (Nordex) is in the business of manufacturing furniture. Because the industry has matured, Nordex is

considering adding a new product line, manufacturing plastic products such as cases for compact discs. No director will have a

personal interest in the decision to expand into those lines.

(20%) To avoid liability for making a poor decision, what standard of conduct should Nordex's board of directors comply with?

What must the board do to comply with that standard? Discuss fully.