Tanaka a director and officer of deep hole oil company, Ask an Expert

Management Studies

Tanaka, a director and officer of Deep Hole Oil Company, telephoned Romani for the purpose of buying two hundred shares of Deep Hole Company stock owned by Romani. During the period of negotiations, Tanaka concealed his identity and did not disclose the fact that earlier in the day he had received a report of two rich oil strikes on the oil company's property. Romani sold his two hundred shares to Tanaka for $10 per share. Taking into consideration the new strikes, the fair value of the stock was approximately $20 per share. Romani sues Tanaka to recover damages. Is Tanaka liable? If so under which provisions and for what amount of money?

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Management Theories, Management Studies

Category:- Management Theories
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