LAW 401 SEU Business Law Discussion

Discussion QuestionIn 2001, British-Dutch corporation Unilever attempted to purchase the assets of Ben
& Jerry’s Ice Cream. The Board of Directors of Ben & Jerry’s refused the offer.
Unilever’s offer was very generous and would have resulted in a major windfall for
the shareholders of Ben & Jerry’s.
The Shareholders threatened to sue the Board of Directors for a breach of fiduciary
duty arguing the Board of Directors had a duty for care to make good decisions on
behalf of the Corporation. And denying the purchase offer violated that duty.
In fear of the lawsuit, the Board agreed to the sell terms. Do you believe the Board of
Directors had a duty to accept the buyout offer? And did their failure to accept it
amount to a breach of the fiduciary duties owned to the shareholders?
Action Items
1. Create your initial post responding to the discussion question above. After you post,
you will be able to see your classmates’ posts.
2. Reply to at least one of your classmates.