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3. Why should spot audits be conducted? 4. What are the consequences of a contract, entered into by the board with Mr. X, the only son of a board member who is a partner of his son in the business, as to validity, rights, obligations, and sanctions? 5. What is ratification? What are its consequences? 6. How does "loss of confidence" in a director vary from a disloyal vary from a disloyal act of a director? 7. What is due process of law? 8. Should the audit committee review the performance of the board of directors? Why? How about the credit committee? Explain 9. Who audits the audit committee? Explain 10. Why does ratification by the general assembly of a defective contract cure the defects of the agreement