business judgment rule

noun

Legal Definition of business judgment rule

: a rule of law that provides corporate immunity to directors of corporations protecting them from liability for the consequences of informed decisions made in good faith

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“Business judgment rule.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/business%20judgment%20rule. Accessed 21 Jan. 2021.

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