Property Management
Under Florida's condominium association law, the board of directors may use the 'business judgment rule' as a defense against unit owner challenges to their decisions. This rule provides protection when the board:
AFollows all state laws regardless of the association's governing documents
BActs in good faith, with due care, in a manner the board reasonably believes to be in the best interest of the association✓ Correct
CHas the approval of at least 75% of unit owners
DObtains independent legal advice before each decision
Explanation
The business judgment rule protects board members from personal liability for decisions made in good faith, with due care, and in what the board reasonably believes to be the association's best interests. Courts will defer to the board's decision unless the board acted fraudulently, in bad faith, or in an arbitrary and capricious manner. Boards are not required to make perfect decisions.
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