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National Drilling Company ships its only pump to American Hydraulics Corporation,
the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump
to American Hydraulics and to return it to National as soon as the repair is complete.
National is forced to suspend operations without a pump, but Overland does not know
this. National expects to be without the pump for five days and to lose profits of $5,000.
When the pump is not returned by the end of the fifth day, National rents a pump at a
cost of $100 per day. Overland delays five more days before returning the pump.
National files a suit against Overland, asking for compensatory, consequential, and
punitive damages. Will National recover?
A buyer's breach of a contract will not usually give the seller the right to cancel the
contract.
All nations have restrictions on imports.
If a party breaches a contract, the other party can file a criminal complaint
The U.S. Constitution is the supreme law of the United States.
A stock warrant is a distribution of corporate profits or income.
A person who does not know about a reward can still claim it.
To rescind a contract, the parties must make a second agreement that includes
consideration.
A general partner is personally liable for partnership debts if its assets are insufficient to
pay its creditors.
A director may not sit on the board of more than one corporation at a time.
A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the
United States.
Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition
television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be
made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that
some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks
whether the sets might have been damaged as they were being loaded. Signal assures
Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal
refuses, claiming that the first delivery to new customers is always for cash. Tuner
promises to pay the cash within two days. Signal leaves the sets with Tuner, which
stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days
later, Tuner's stocker opens some of the cartons and discovers that a number of the sets
are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in
breach by not paying on delivery. Will Signal succeed on these claims? Explain.
Money laundering includes making "dirty" money "clean" of legitimate businesses.
Bowie, a certified public accountant, prepares and certifies Candy Products
Corporation's financial statements. These statements are included in Candy's
registration statement filed with the Securities and Exchange Commission before
Candy's offering of securities. Dona buys a security covered by the registration
statement. Based on this transaction, Dona files a suit against Bowie under Section 11
of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
To succeed in the suit, what must Dona prove? Bowie responds that Dona was not in
privity with him and that even if she had been in privity, she cannot prove his lack of
due diligence. Can Bowie prevail on these grounds? Why or why not?
If it can be shown that a trespass to personal property was warranted, a complete
defense exists.
In cyberspace, thieves are as subject to physical limits as they are in the "real" world.
Consequential damages are foreseeable damages that arise from a party's breach of a
contract.
A general contractor who suspects that a subcontractor's bid is a mistake can still
enforce the bid.
Title is one concept that the UCC has substituted for the common law concept of risk of
loss.
Most limited liability company (LLC) statutes provide that unless the members agree
otherwise, all profits of the LLC will be divided equally.
