Business Judgment Rule and Disney Appeal

Posted on February 6, 2006 by Francis Pileggi

Prof. Bainbridge posts about a recent short article he wrote summarizing the Business Judgment Rule (“BJR”) in light of oral argument last week in the Disney case before the Delaware Supreme Court, and a related New York Times article referring to the BJR as esoteric. In his short article, Prof. Bainbridge argues that the BJR should not be esoteric and he tries to summarize the rule in a way that should be understood by all directors.