167: Listen and Learn -- Direct and Derivative Actions (Corporations)

Welcome back to the Bar Exam Toolbox podcast! Today, we review the terminology and rules that you'll need to know when answering a question on direct and derivative actions. To illustrate the concepts, we also go over two questions adapted from the California bar exam. In this episode, we discuss: Differences between direct and derivative causes of action Duty of loyalty and duty of care to a corporation Damages awarded in direct and derivative suits Majority shareholder oppression Analyzing two hypos involving corporations, from the February 2017 and July 2015 California bar exams Resources: “Listen and Learn” series (https://barexamtoolbox.com/bar-exam-toolbox-podcast-archive-by-topic/bar-exam-toolbox-podcast-explaining-individual-mee-and-california-bar-essay-questions/#listen-learn) The Brainy Bar Bank: Streamlining Bar Study (https://barexamtoolbox.com/brainy-bar-bank/) California Bar Examination – Essay Questions and Selected Answers, February 2017 (https://www.calbar.ca.gov/Portals/0/documents/admissions/Examinations/CBXFeb2017_Selected_EssayQuestions1-6_R.pdf) California Bar Examination – Essay Questions and Selected Answers, July 2015 (https://www.calbar.ca.gov/Portals/0/documents/admissions/gbx/July2015_CBXSelectedAnswers_EssayQuestions1-6_R.pdf) Podcast Episode 23: Tackling an MEE Corporations Question (https://barexamtoolbox.com/podcast-episode-23-tackling-an-mee-corporations-question/) Podcast Episode 35: Tackling a California Bar Exam Essay: Corporations (https://barexamtoolbox.com/podcast-episode-35-tackling-a-california-bar-exam-essay-corporations/) Podcast Episode 120: Listen and Learn – Piercing the Corporate Veil (https://barexamtoolbox.com/podcast-episode-120-listen-and-learn-piercing-the-corporate-veil/) Podcast Episode 124: Listen and Learn – Duty of Loyalty (Corporations) (https://barexamtoolbox.com/podcast-episode-124-listen-and-learn-duty-of-loyalty-corporations/) Podcast Episode 150: Listen and Learn – Corporate Formation and Pre-Incorporation Liability (https://barexamtoolbox.com/podcast-episode-150-listen-and-learn-corporate-formation-and-pre-incorporation-liability/) Download the Transcript (https://barexamtoolbox.com/episode-167-listen-and-learn-direct-and-derivative-actions-corporations/) If you enjoy the podcast, we'd love a nice review and/or rating on Apple Podcasts (https://itunes.apple.com/us/podcast/bar-exam-toolbox-podcast-pass-bar-exam-less-stress/id1370651486) or your favorite listening app. And feel free to reach out to us directly. You can always reach us via the contact form on the Bar Exam Toolbox website (https://barexamtoolbox.com/contact-us/). Finally, if you don't want to miss anything, you can sign up for podcast updates (https://barexamtoolbox.com/get-bar-exam-toolbox-podcast-updates/)! Thanks for listening! Alison & Lee