BLAW 50972

subject Type Homework Help
subject Pages 6
subject Words 1109
subject Authors David P. Twomey, Marianne M. Jennings

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A check is drawn on the assumption that the bank has sufficient funds in the drawer's
account for payment.
If the tenant uses the property for any purpose other than the one specified in the lease,
the landlord has the option to declare the lease terminated.
If a trustee is not elected by creditors, an interim trustee will be appointed by the court.
Under the UCC, a negotiation is not effective when it is made by a minor or any other
person lacking capacity.
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The past performance of the parties under a continuing contract is important in
determining what the contract means.
A young stockbroker was rather overwhelmed by a flood of new clients. Assunta, one
of his clients, had purchased XYZ Corp. stock through the broker at a price of $35 per
share. The price had gone down to $29 by the time Assunta telephoned the broker.
Assunta told the broker that she wanted to sell the stock if it went below $30 and
inquired as to the price. The broker did not check the price, but thinking it could not
have fallen below the $30 threshold, simply reassured Assunta that it was still "in the
low 30s."
Marta, Assunta's cousin, also had purchased XYZ stock at $35 per share and made a
similar call to the broker and received the same response. Marta, however,
coincidentally saw the price on a stock ticker tape when she hung up and realized the
broker had made an error. Both Assunta and Marta held the stock and did not sell.
Later that same day, the stock price fell an additional $7 per share. Facing sizable
losses, both Assunta and Martha decided to sue for fraud when Marta told Assunta of
the broker's misstatement. Discuss the probable outcome of the lawsuits.
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A copyright owner may prohibit even limited use of copyrighted material if it is used
for parody or criticism.
To correctly transfer shares of stock, a delivery from the owner of the shares directly to
the transferee is required.
Even limited partners are completely liable for debts of the business.
Executives can be convicted on the basis that something went wrong at their company.
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Cameo Industries desired a workplace free from all forms of sexual harassment.
Accordingly, Cameo developed guidelines for its workers that specifically forbade
sexual harassment. The guidelines gave examples of conduct that would not be
tolerated, provided penalties, designated a company official as the proper person to
whom complaints should be brought, investigated complaints thoroughly, and
maintained an educational policy designed to remind employees of the policy.
Maureen, a Cameo Industries employee, made a complaint of sexual harassment,
charging that her supervisor had demanded sexual favors. An investigation was
performed and the charge was substantiated. The supervisor was warned not to continue
this conduct, but it happened again. The supervisor was again issued a warning. Finally,
Maureen brought a court action against the supervisor and Cameo. Cameo defended on
the ground that it had done all in its power to rectify the situation. Decide.
An accountant may be liable for malpractice if the accountant fails to detect signs that
an employee of the client is embezzling.
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It is unlawful for employers to undertake special recruiting efforts to hire and train
minorities and women in an effort to have a diverse workforce.
Contractual capacity can exist even though a party does not understand every provision
of the contract.
Al was a well-respected attorney in a small town. A couple retained Al to represent
them on the purchase of a home. Before closing, Al informed the couple of payments
that they were required to make by check at the closing. Among the required payments
the attorney told the couple to make were a check for $1,500 to Bob Brown and a check
for $610 to Susan Lee. The attorney explained that the check to Brown was for a survey
of the property and the check to Lee was for termite control work that the couple had
authorized.
The checks were issued and taken by Al who promised to deliver them. Al did not,
however, deliver them. Instead, Al forged the indorsements of the respective payees and
cashed the checks. When Al was later arrested on a similar matter, the couple learned
what had happened.
The couple made a claim against its bank for reimbursement, claiming the bank was not
authorized to pay these checks because they had not been effectively negotiated to the
bank. When the facts came to light, no person named Bob Brown had done a survey on
the property, but the termite work had been done by Lee. Decide both cases.
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Because many oral contracts are legally enforceable, it is a good business practice in the
preliminary stages of discussions to stipulate that no binding agreement is intended to
be formed until a written contract is prepared and signed by the parties.
It is necessary that a third-party beneficiary be identified by name.

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