David is the president of Lotus Corporation (Lotus). David decided to have Lotus manufacture large, non-fuel-efficient sport utility vehicles (SUVS) just before gasoline prices rose dramatically. As a result, Lotus lost a significant percentage of its automotive market share. Lotus shareholders want to sue David for his bad decision that cost them millions of dollars. However, David made a reasonable investigation before making this decision, he had a rational basis for it, and he had no conflicts of interest regarding this decision. Which of the following is the most likely outcome if the shareholders file a lawsuit against David? a.David will be held liable under the ultra vires rule.
b.David will not be held liable, since corporate presidents have absolute Immunity from liability for decisions they made in the ordinary course of business. c.David will be held liable under the vicarious liability rule.
d.David will not be held liable under the business judgment rule.
