Fundamentals of Business Law: Benihana of Tokyo, Inc. v. Benihana, Inc.
VerifiedAI Summary
This case study discusses the Benihana of Tokyo, Inc. v. Benihana, Inc. case and its impact on the business judgment rule. The case involved a disagreement between Benihana of Tokyo and Benihana Inc. over a stock sale by a director who was also the main owner of the buying company. The court ruled in favor of Benihana Inc. using the business judgment rule, which protects directors from allegations about how they conduct business. This case has implications for other businesses and their directors.