Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate
commerce.
A trade association practice or agreement that restrains trade is analyzed under the rule
of reason.
Private parties can sue violators of the Securities Act of 1933.
Generally, a tenant must pay agreed-to rent even if the tenant moves out.
As long as a contract is personal in nature, all rights under the contract can be assigned.
An involuntary bankruptcy occurs when a debtor’s creditors are forced to accept a
discharge of the debtor’s debts.
A credit-card company is not required to provide advance notice to consumers before
changing credit-card terms.
Making out a prima facie case of discrimination means that a plaintiff has met his or her
initial burden of proof.
Market concentration refers to the number of firms in the market.
In sales law, a warranty is an assurance by one party of the existence of a fact on which
the other party can rely.
The failure to pay a debt as promised is known as default.
A shrink-wrap agreement is an agreement whose terms are expressed inside a box in
which the goods are packaged.
Sally and Tom decide to go into business, selling discounted merchandise through their
Web site “e-Buy.” They sign a partnership agreement that requires Sally to contribute
$12,000 and Tom to contribute $8,000 in capital to start the firm. The agreement also
states that only Sally will have the authority to bind the partnership in deals with third
parties, but the agreement says nothing about the management of the firm or a division
of profits. Without Sally’s knowledge, Tom tells United Computer Products, Inc., that
he represents the firm and signs a contract with United to buy hard drives for resale on
e-Buy. In the first year, e-Buy makes a profit of $50,000. What are the partners’ rights
with respect to the management of the firm? Is the partnership bound to the contract
with United? Do the partners split the first year’s profits? If so, how much is each
entitled to?
Interpretive rules simply declare policy and do not affect legal rights or obligations.
For most purposes, the law recognizes a partnership as an independent entity.
If a seller asks a buyer to store nonconforming goods overnight, then the buyer is
entitled to reimbursement for the costs involved.
A bailment must be in writing to be valid.
A party seeking to recover in quasi contract must show that there was an actual contract
or agreement between the parties.
Foreign investors are not allowed to become limited liability company members.
Giving an agent a power of attorney confers implied authority.