The Hermit Company Ltd. is the owner of a number of commercial buildings in Halifax. One of the directors, Harrison, suggested that the corporation purchase a large apartment building. Another director, Ford, was the owner of a one-third interest in the building. Ford may be obliged to pay over to the corporation any profit earned on the sale of the building if he fails to disclose his interest at the directors' meeting.

True or False

Isabel was the Secretary-Treasurer of Premier Gambling Inc. She contacted Peter, a competitor in online gaming, to determine if he might be interested in the purchase of Premier Gambling. Peter expressed an interest in the purchase, and Isabel advised Peter that she would arrange to have the sale of the business approved by the shareholders, as required by the corporation's bylaws. Isabel eventually produced a shareholders' resolution authorizing the sale. Later, it was discovered that proper notice of the shareholders' meeting had not been given, and no quorum of shareholders was present at the meeting. The agreement to sell the business was void, because proper shareholder approval had not been given for the sale.

True or False

Giardetti, a retailer, placed an advertisement in a local newspaper on May 5^th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10^th at a sale price of $100 each. Regular price $199. First come, first served!" Don was the 10^th customer in the store on May 10^th, but Giardetti refused to sell him a TV set for $100. If Giardetti had placed a notice on his shop door on May 9^th which read: "Sale cancelled," his notice would revoke the offer made in the newspaper on May 5^th.

True or False

Felix was a director of Great Logistics Ltd., a corporation which leased a large dock from Juneau. Felix gave instructions to the person in charge of the dock that the container ship would be using the dock to unload its cargo. The ship damaged the dock on its arrival, and the dock owner brought an action against Great Logistics Ltd. for repairs. If the ship was owned by another corporation in which Felix had an undisclosed financial interest, Felix would be liable to Great Logistics for granting unauthorized permission for the ship to use the dock.

True or False