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Under the tort of false imprisonment, shopkeepers are prevented from detaining anyone
whom they believe has shoplifted.
It is worse for the holder to lose order paper than to lose bearer paper.
A trespass to personal property is any unpermitted entry below, on, across, or above the
land of another.
Under the "close-connection" doctrine, a holder has taken so many instruments from its
transferor or is so closely connected with the transferor that any knowledge the
transferor has is deemed transferred to the holder, preventing holder in due course
status.
A trustee is not permitted to profit personally from the position of trustee, other than to
receive the compensation allowed by contract or law.
A bill of sale can be used as proof of an otherwise oral agreement.
When the federal government deregulates an industry, the states automatically have the
power to regulate the same industry.
When we speak of government regulation of business we ordinarily mean state
government regulation, not federal government intervention.
In some states an exculpatory clause protects the accountant from a malpractice suit
brought by a third party but now from a suit brought by a client.
All courts hold that when an agreement requires satisfaction of the other party regarding
the acceptance of an act, a reasonable person standard is used.
If goods are specially manufactured and the buyer refuses to take them, it is possible for
the seller to recover as damages the full purchase price and keep the goods.
Fraud as to the nature or essential terms of an instrument is a limited defense not
available against a holder in due course.
An executory contract is an agreement by which something remains to be done by one
or both parties.
A holder who is neither a holder in due course nor a holder through a holder in due
course is subject to every defense, just as though the instrument were not negotiable.
Creditors who hold security for payment, such as a lien or a mortgage on the debtor's
property, are less affected by the debtor's bankruptcy.
Securities covered by the securities acts includes only investment instruments such as
stocks and bonds not "investment contracts."
