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Simple English definitions for legal terms

enhanced scrutiny test

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A quick definition of enhanced scrutiny test:

The enhanced scrutiny test is a way to evaluate the decisions made by a company's board of directors during a takeover. The test has two parts: the reasonableness test and the proportionality test. The reasonableness test requires the board to show that they had a good reason to believe that the takeover would harm the company. The proportionality test requires the board to show that their response to the takeover was reasonable and not too extreme. If the board passes both tests, then their decisions will be evaluated using the business judgment rule. In constitutional law, the enhanced scrutiny test is used to determine if a law is constitutional.

A more thorough explanation:

The enhanced scrutiny test is a legal term used in corporation law and constitutional law.

In corporation law, the enhanced scrutiny test was established in Unocal Corp. v. Mesa Petroleum, 493 A.2d 946 (Del. 1985), also known as the Unocal Test. The test is applied to a target board's decision-making process when a takeover is occurring, to determine if the business judgment rule will apply to their decisions.

There are two prongs to the enhanced scrutiny test:

  • Reasonableness Test: The target board must demonstrate that it had reasonable grounds for believing that a danger to corporate policy and effectiveness existed.
  • Proportionality Test: The target board must demonstrate that its action or response was reasonable in relation to the threat posed and that the response was not draconian and inappropriate in response to the threat.

If both prongs of the enhanced scrutiny test are satisfied, then the court will use the business judgment rule to evaluate decisions made by the target board.

In constitutional law, the enhanced scrutiny test is a term used to refer to intermediate scrutiny, which is used to determine the constitutionality of a statute.

An example of the enhanced scrutiny test in corporation law is when a company is facing a hostile takeover bid. The target board must show that they had reasonable grounds for believing that the takeover would harm the company's policies and effectiveness. They must also show that their response to the takeover bid was proportionate to the threat posed.

An example of the enhanced scrutiny test in constitutional law is when a law is challenged for violating the Equal Protection Clause of the Fourteenth Amendment. The court will apply intermediate scrutiny to determine if the law is constitutional. This means that the law must be substantially related to an important government interest.

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ross ulbricht tried to hire a hitman to kill 5 people
i am not that sympathetic to him
Dkk
23:04
@KnowledgeableRitzyWasp: That might have been an FBI agent. It was most likely him and he was most likely doing it to retrieve stolen funds that corrupt FBI agents stole, but yeah moral gray area but me personally, cool with hitmen. It's not like it is uncommon to hire hitmen. I don't think the action itself is necessarily wrong but the intent behind it can be.
Dkk
23:05
Like, Boeing whistblowers being killed by hitmen = wrong but a guy hiring hitmen to retrieve stolen funds = good to me.
texaslawhopefully
23:05
@Dkk: Yeah, for sure. My guess is it'll go to SCOTUS and it'll be 8-1 or 7-2, saying that EO was unconstitutional.
Dkk
23:06
Indeed. I need a count for how many exectuive orders he has signed and how many already have pending lawsuits.
i've been away for a while what were the most recent waves? any this week?
lilypadfrog
8:12
hi shawties
lilypadfrog
8:16
who’s getting into a law school today raise your hand
jackfrost11770
8:28
I sure hope so at this point
lilypadfrog
8:28
woooo
lilypadfrog
8:28
jackfrost for law school
jackfrost11770
8:29
LILYPADFROG FOR LAW SCHOOL
jackfrost11770
8:29
I really just love how now there's an executive order that says I don't exist as a person
jackfrost11770
8:29
Do I not have to pay taxes now? Loans? What now
lilypadfrog
8:34
you should probably assume this means your law school will be free
GreyCeaselessMammoth
8:34
i love that there's an executive order that we're all female now
jackfrost11770
8:38
I think so yeah. I think I don't have to pay for anything anymore
Trismegistus
8:40
can someone release today my god
lilypadfrog
8:41
i’m boutta release
sounding like that one guy in here who kept saying he was cumming
Dkk
8:43
Was that me cus I just released.
lilypadfrog
8:44
Wahoowa
Dkk
8:45
AI Overview +1 "Wahoowa" is a cheer and greeting used by fans of the University of Virginia (UVA).
Dkk
8:45
Learned something new today. I can sleep knowing I learned something today.
lilypadfrog
8:48
https://en.m.wikipedia.org/wiki/Dalgona I just learned about these things. Apparently they’re featured in Squid Game, but I think Squid Game is just a ripoff of the original Mr Beast Games
I learned today the term fight fire with fire comes from the early day of fire fighting when departments would just bulldoze buildings and then burn them in an attempt to stop a fire from spreading. So to stop fire from burning shit they would burn down other buildings in a more violent and destructive way thus lowering the fires moral so much it refuses to spread and work.
GreyCeaselessMammoth
8:51
that's like basically how wildland firefighting still works
I did wildland and most of the time it was controlled burns but it is pretty funny to imagine doing that in a city/neighborhood.
Dkk
8:52
The Santa Ana winds kinda helped with that because it pushed the fire back to where it had already burned despite the news media saying everything was going to get worse like the idiots they are.
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