Administrative agencies generally exercise substantial discretion over the type of
hearing procedures that they use.
A principal is responsible for all intentional torts committed by an agent.
Filing a financing statement with the appropriate public office is the only way to perfect
a purchase-money security interest in consumer goods.
If a note is payable in thirty days, payment is due by midnight on the thirtieth day.
A debtor wishing to file for bankruptcy must complete the means test to determine
whether he or she qualifies.
A promise to perform under a contract is never absolute.
If a principal does not ratify an unauthorized contract, the principal is not bound.
A purchase-money security interest in consumer goods is perfected automatically at the
time of a credit sale.
A justiciable controversy is a case in which the court’s decisionthe “justice” that will be
servedwill be controversial.
A contract can include a provision stating that no damages can be recovered for certain
types of breaches.
Merchants are required to warrant that the goods they sell are fit for their ordinary
purpose.
Buying or selling securities on the basis of nonpublic information is illegal only if the
profit from the transaction is unreasonable.
Susan is the president of United Food Corporation, a wholesale grocery company. An
inspection by Tim, a government agent, uncovers unsanitary conditions caused by Val, a
United employee, in the United warehouse. Will, a United vice president, assures Tim
that the situation will be corrected, but nothing is done, which a later inspection reveals.
Susan knows nothing about any of this. Can United be convicted of a crime in these
circumstances? Can Susan be held personally liable?
An installment contract is breached if a buyer accepts any nonconforming goods.
Warranties of title do not arise in most sales contracts.