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The main point is that there is an absence of criteria by which the courts can assess the merits of an exercise of business discretion.
Still, duty free and governed by the Swiss system of business discretion, the free ports have helped make Switzerland a crossroads of the smuggler's world.
Corporate freedom of action is bounded by law (the rights of employees, environmental controls, and so on) and constrained by markets, but within these limitations there is a core of real business discretion.
Where loss has been caused by an act or omission which is of a comparatively mechanical character, rather than involving an exercise of business discretion, the courts have, in contrast, shown themselves to be more willing to impose liability.
A co-op building's board can exercise its own business discretion to impose restrictions on shareholders, and reject prospective purchasers without explanation, as long as the board does not violate federal and state housing or civil rights laws.
Wright Andrews Jr., a Washington lobbyist and lawyer, who has contributed to the campaign committee for Representative Deutsch and many other candidates through the years, said that he assumed some candidates dabbled in the stock market and considered it reasonable business discretion.