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Insurance coverage is never effective until a formal written policy is issued.
Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under
a written lease with a twenty-year term, rent payable annually. The lease includes a
clause stating that Burgertown is responsible for making all necessary repairs, including
rebuilding the structure after its destruction by any cause beyond Andy's control. The
lease does not include a clause concerning its assignment. One day after the tenth rental
payment, Burgertown, without Andy's knowledge or consent, assigns its interest in the
lease to Chicken Hut Restaurants, Inc. Meanwhile, Andy dies and Dotty inherits Andy's
interest in the building. Without the knowledge or consent of either Burgertown or
Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the
building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a
suit against Earnest for the expense. Earnest responds that the lease has terminated. Is
Earnest correct? If so, when did the lease terminate? If not, is Earnest liable for the cost
of rebuilding the structure? Why or why not?
A written contract for a transfer of land is enforceable.
Stocks are an example of property that does not come under UCC Article 2.
A price-fixing agreement that is reasonable does not violate antitrust law.
Express authority is authority declared in clear, direct, definite terms.
Under their police powers, states can regulate only public activities, such as political
demonstrations.
A seller's failure to disclose a serious defect about a product for sale may give rise to an
action for fraud.
Jade, Kelly, and Lila organize a nonprofit businessJKL Markets, Inc.to buy groceries
from wholesalers and sell them to consumers who buy a membership in JKL. Because
the firm is a nonprofit entity, it is able to sell the groceries for less than a commercial
grocer could. What form of business organization is JKL Markets? Is it significant that
JKL is incorporated?
A corporation cannot refuse a shareholder's request to inspect corporate records.
A director cannot be elected by the other members of the board.
A continuation statement is effective only if it is filed within six months before the
expiration of a financing statement.
Persons whose names appear in a corporation's stock book are ordinarily entitled to
notice of shareholders' meetings and the right to vote.
A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's
contracts by creditors.
The trustee is the person for whose benefit a trust is held.
For purposes of establishing negligence, causation in fact exists if an injury would have
occurred even without the defendant's act.
Only a mistake in value will make a contract voidable.
An executory contract is one that has been fully performed.
