Susan is a promoter for a proposed corporation, Acme Corp. As promoter, she signed a
three-year lease to rent office space in an office park. She signed her name and indicated
below her signature she is signing as "promoter for Acme Corp., a company yet to be
incorporated."
Acme is never incorporated. The lessor believes that Susan is personally liable for any damages
it will sustain as a result of the three-year lease having to be breached. Is Susan personally liable?
Explain.
2. One of the directors of Independent Acme purchases 100 acres of timberland. In order
for him to sell the timber from this land to Independent, what must he do? If he does not
act properly in this situation, what duty would he violate, and what would be the result?
3. Kelly is the CEO of Acme Corporation. Who sets her compensation, and what types of
compensation would she likely receive in addition to her salary? Can shareholders do
anything to challenge her level of compensation if they think it is unfairly high in
comparison to average employee compensation within the company?