The Constitution may be amended, but it always has been interpreted in the same way.
Administrative agencies are, in effect, a fourth branch of the government.
Arnold was the sole shareholder, president, and chief executive officer of Algernon
Enterprises, Inc. Acting on behalf of Algernon, Arnold negotiated the credit purchase of
inventory from Amax. The contract was signed in the name of Algernon Enterprises.
Algernon never paid the sums due on the contract, and Arnold and the corporation were
sued. Is Arnold personally liable to Amax?
The Constitution took certain powers away from the national government and gave
them to the state governments.
The promise of a creditor to refrain from collecting a debt is consideration for a promise
by the debtor to modify the terms of the transaction.
Business corporations exist to make a profit.
A surety that has made payment of a claim for which it was liable as surety is not
entitled to indemnity from the principal debtor.
By operation of law, a party can be discharged in bankruptcy from debts.
A drawee on a draft has no responsibility under the draft until it has accepted that
instrument.
Provisions in contracts may actually prevent future lawsuits from occurring.
A bailment is a special form of sale in which possession is transferred to a bailee.
Under the Bankruptcy Reform Act, the allowable homestead exemption for debtors was
significantly reduced.
A California corporation is a foreign corporation with respect to the remaining
forty-nine (49) states of the United States.
When a contract falls within the statute of frauds, the signatures of both parties must be
shown to the court.
On April 15, Morgan sent a letter to Clark offering to sell her business to Clark for
$200,000. The offer stated that it would expire on May On April 30, Morgan sent
another letter to Clark that stated that she was withdrawing the offer. Clark received that
letter on May 1. Also on April 30, Clark sent a letter to Morgan accepting the offer.
Morgan received that letter of acceptance on May 1. Morgan refused to sell the business
to Clark, claiming that no contract had been formed. Clark brought suit to enforce the
contract against Morgan. Based on what you have learned in this chapter, decide the
probable outcome of the case.
In large cities talent agencies typically charge clients no more than a 10% commission.
Tina’s Talent, Amy’s Actors & Models and the Barton Agency are the only three talent
agents in a small city. Due to the limited amount of work available for actors and
models in their city, the three talent agents have gotten together and agreed to never
charge a commission below 15%. Discuss if this is acceptable under the Sherman Act.
A societé anonyme is the European counterpart of a U.S. corporation.
An option is itself a contract to refrain from revoking an offer.
A provision in a contract that gives what the court believes is too much of an advantage
over a buyer may be held void as unconscionable.
A debtor may redeem collateral at any time prior to the time that the secured party has
disposed of the collateral or entered into a binding contract for resale by tendering the
entire obligation that is owed plus any legal costs and expenses incurred by the secured
party.