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The seller of a painting is not bound by the sales contract if the painting purchased was
considered of little value and only later discovered to be valuable to the surprise of both
buyer and seller.
Requiring buyers to purchase one product in order to get another is acceptable practice
and not a violation of the Sherman Act.
Under the Semiconductor Chip Protection Act reverse engineering exemption,
competitors may study mask works but may not use the results of that study to design
their own semiconductor chip.
A disclaimer based on lack of knowledge will always protect an accountant from
liability.
To begin a lawsuit, both parties must appear in person and state their claims and
defenses in court.
A holder of the paper has immunity from certain defenses that might have been asserted
against the transferor.
The steps in terminating a financing transaction upon full payment by the debtor
include the preparation of a termination statement by the creditor and the presentation
of the statement to the filing officer, who marks the record "terminated."
In the partially disclosed principal situation, the agent is considered a party to the
contract.
Shareholders ordinarily cannot be sued for corporate liabilities.
Horseco, a new business, purchased ten thoroughbred horses for racing and breeding
purposes. It hired John, an accountant, to prepare financial projections of anticipated
future earnings for the first five (5) years of the new business. The information provided
to John as the basis for the projections included assumptions made by Horseco about
anticipated earnings from racing and breeding. The assumptions were based on
Horseco's experience and were not based on objective standards that could be examined
by John. John included with the projections a disclaimer that stated that the income
projections were based on assumptions provided by Horseco and that John assumed no
personal responsibility for the accuracy of those projections. Subsequently, the Larson
Company purchased a fifty (50) percent interest in Horseco, and when Horseco's
income did not match the projections, Larson sued John for accounting malpractice.
How will the court decide?
Trust is a fundamental basis of the capitalist system that is central to the expectations of
investors, customers, and other firm stakeholders.
A general partner within a limited partnership may be a corporation.
Civil laws define wrongs against society.
Uniform State Law generally is not applicable to business.
The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a
partnership.
Taylor, a securities lawyer for a major Wall Street law firm, worked on numerous
successful takeover bids of companies listed on the New York Stock Exchange. Prior to
the public announcement of the takeover bids, Taylor provided information to Rogers
(his stockbroker) and to Price (his mistress) about certain planned takeover bids on
which he had provided legal services. Rogers, who was aware of the relationship
between Taylor and Price, made purchases of the target companies on Rogers' and
Price's behalf, netting them more than a million dollars in profits each. The SEC brings
an action against Taylor, Rogers, and Price under Rule 10b-5 and the Insider Trading
Sanctions Act of 1984. Taylor defends that he is an outsider not subject to the 1984 law
and Rule 10b-5, and that he received no personal benefit. Rogers and Price defend that
they were merely acting on stock market tips received from a person who did not
personally benefit from the disclosure. Decide.
A written stop payment order is effective for one year.
