Angie Jolson is the chair of the board of directors of Artel, Inc., and Sam Douglas is the chair of the board of directors of Fox Express, Inc. Jolson and Douglas meet to consider the possibility of combining their corporations and activities into a single corporate entity. They consider two alternative courses of action: Artel could acquire all of the stock and assets of Fox Express, or the corporations could combine to form a new corporation, called A& F Enterprises, Inc. Both Jolson and Douglas are concerned about the necessity of a formal transfer of property, liability for existing debts, and the need to amend the articles of incorporation.
(a) The first group will identify the first proposed combination and outline its legal effect on the transfer of property, the liabilities of the combined corporations, and the need to amend the articles of incorporation.
(b) The second group will do the same for the second proposed combination—determine what it is called and describe its legal effect on the transfer of property, the liabilities of the combined corporations, and the need to amend the articles of incorporation.