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Problems
Foodtown Corp. runs
a chain of grocery stores in Winston-Salem, a bucolic community of 170,000
in the piedmont region of North Carolina. Winston-Salem has a blue
law that requires businesses close on Sunday mornings. The Foodtown
board decides nonetheless to open its stores all day Sunday, and business
couldn't be better. A Foodtown shareholder sues the board claiming
a breach of fiduciary duties.
Party
A (Shareholder) Argue the court should compel the board to comply with
the blue law.
Party
B (Management) Argue the court should not compel the board to comply
with the blue law.
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