Motor Parts Corporation Offers to Buy the Stock of Nascar

Question 60
Multiple Choice

Motor Parts Corporation offers to buy the stock of NASCAR Products Corporation (NPC).NPC's directors oppose the offer.Orin and other NPC shareholders file a suit,alleging a breach of the directors' fiduciary duties.Most likely,the court will A)apply the business judgment rule to analyze the directors' acts. B)dismiss the suit as a non-judicial dispute over "fair value." C)evaluate the terms of the deal on the basis of antitrust law. D)order that the shareholders be paid a "premium" for their stock.