Part Seven Case Study
Gries Sports Enterprises, Inc. v. Cleveland Browns Football Co., Inc.
1. The plaintiffs-appellants, that is Gries Sports Enterprises, Inc. and Robert Gries, had the burden
of proof in this case.
2. According to the court in this case, a director or directors will be interested if he or she “appears
3. According to the court in this case, a director will be independent if his or her “decision is based
4. The court says that a director will be considered informed if he or she “makes a reasonable effort
5. When the business judgment rule is not applied, as occurred in this case, the fairness rule is used
6. No. The court did not believe that the purchase of Cleveland Stadium Corporation was fair to the
Cleveland Browns or to minority shareholders. The court said “no arms length negotiations as to price,