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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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Mostlylegal
18:04
Another day another no A
Yeah i got shit on last week so weird to go crickets this week
@ParallelAgreeableOrangutan: also ty I just sent a LOCI in email form. hope they don't hate it lmfao
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Penn Dick gave me the R
what kind of a name is penn Carey law anyway
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Penn gon Carry u to meat market that is the legal career field
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Buy 1 get 1, Penn Carey Grads, get em while they are hot!
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i talked to such a nice rep for penn dick like years ago and i put them on my list
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Legit makes no sense that nd has accepted literally nobody still
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manybe ND is taking a sabbatical?
got a gw wl->A!!!
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Did they give you scholly information???\
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so stoked for you. congrats. i imagine your previous decisions had been a little crushing. very happy your app got the recognition it deserved
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@RoyalReadyKiwi: lessgo stay winning :D awesome work!!!
thank you so much guys!!! means a lot :D
CONGRATS ROYAL YASSSS
i feel like i live in my bubble because i'm seeing people talk about other people abusing time accommodations for the lsat and my first reaction was "they are?"
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