(a) Smith, a director of the Sample Corporation, sells a piece of vacant land to the Sample...

Question:

(a) Smith, a director of the Sample Corporation, sells a piece of vacant land to the Sample Corporation for $50,000. The land cost him $20,000.

(b) Jones, a shareholder of the Sample Corporation, sells a used truck to the Sample Corporation for $8,400, although the truck is worth $6,000.

Raphael, a minority shareholder of the Sample Corporation, claims that these sales are void and should be annulled. Is he correct? Why?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...