Question: 1. Fairly, a director of the XYZ Corporation, issued a false report about the corporation's finances to a bank from which he was seeking a loan. Can the bank recover from the corporation for Fairly's fraud?
2. O & J, Inc., a public corporation, distributed a dividend to its stockholders at a time when the corporation was solvent. The distribution, however, would make the corporation insolvent. Was the dividend unlawful?