Fact Pattern 2-18-1: Standard Company (SC) and Typical Corporation (TC) form United, Inc., a close corporation, and agree to restrict the transfer of its stock to anyone else. SC sells its physical assets, but not its United stock, to Variety, Inc. TC files a suit against SC. Refer to Fact Pattern 2-18-1. SC's sale of its assets

TC files a suit a for violating the stock transfer restriction in a close corporation

Explanation:

In order of desire of limiting the participation of outsiders in the firm, the two companies Standard Company (SC) and Typical Corporation (TC) signed a pact and formed a joint venture.

Now when the Standard Company would sell its physical assets, it can be expected that this would effect the overall stock value of the United Inc. Hence, the stock would get impacted from an action that was not mutually agreed upon by both the parties  

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