"Michelson was chairman of the board and chief executive officer of a computer manufacturing firm. When considering whether to purchase CompuPrint, the manufacturer of computer printers, Michelson examined CompuPrint's financial records, consulted with legal and financial experts, and conducted an in-depth study of the marketplace and decided that it would be profitable for his corporation to purchase CompuPrint. If CompuPrint turns out to be a poor investment, and a court hears a case challenging Michelson's decision, the court will most likely analyze his conduct based on the rule."

Business Judgement Rule

Explanation:

The business judgement rule assumes that corporation boards of directors or CEOs acts in good faith when there are allegations against the way they conduct businesses. It makes directors, CEOs and the likes immune from liability to losses of corporation incured during corporate transactions assuming all their actions made in the transaction that led to the loss was done in good faith. It protects then if they were found to use appropriate measures and procedures in conducting businesses.

answer; because many corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the american company, and harm its reputation;