A limited liability company may elect to be taxed as a partnership, the owners can
manage the business, and the owners have limited liability for debts and obligations of
the partnership.
Drafts can be negotiated from party to party; however, a promissory note, if used as an
extension of credit, cannot be freely negotiated.
If an agent exceeds the scope of his or her authority, the principal is not liable on the
contract unless the principal ratifies it.
If an instrument provides for interest but the amount of interest cannot be determined
from the description, interest is payable at the judgment rate in effect at the place of
payment of the instrument.
Under an implied warranty of merchantability, the goods must be fit for the ordinary
purposes for which they are used.
An offer for a reward can be accepted by a promise to perform.
In a merger, the corporation which ceases to exist is called the dissolved corporation.
The Court of Appeals for the Federal Circuit has special appellate jurisdiction to review
the decisions of the Court of Federal Claims, the Patent and Trademark Office, and the
Court of International Trade.
The offeree is the party who makes an offer to enter into a contract.
An accord is an agreement whereby the parties agree to accept something different in
satisfaction of the original contract.
Where quality control of products is an issue, tying arrangements can be legal.
Classical Hindu law is based on civil codes.
The Fair Labor Standards Act requires that most employees in the United States be paid
at least the federal minimum wage for all hours worked.
All employers in the United States are subject to the provisions of the Civil Rights Act
of 1964.
Mike hires Stephen to paint his house. The contract stipulates that Mike will provide the
paint and equipment and that Stephen will provide the labor for which he will be paid
$1,000. This contract must be in writing according to the Statute of Frauds.
A “point and click”license is a contract used by many software companies to license
their software over the Internet or in physical packages where the software is later
installed on a computer.
The UN General Assembly is composed of fifteen (15.) member nations, five (5.) of
which are permanent members.
An instrument that is nonnegotiable is unenforceable.
An installment contract is one in which payment for the goods is made over time in a
series of agreed-upon payments.
Many of the OSHA standards are conditional duty standards.
Before a strike, a union must give a 30-day notice to the employer that the union
intends to strike.
The president of a corporation usually has the authority to enter into major contracts on
the corporation’s behalf.
When an accountant performs his or her services with reckless disregard for the truth,
or with reckless disregard for the consequences of his or her actions, the accountant is
guilty of actual fraud.
All property can be classified as either real or personal.
The International Court of Justice is located in Geneva, Switzerland.
Tom is going to propose to Betty, so he goes to a jeweler to buy a diamond engagement
ring. The jeweler shows him a diamond and states that it is “AAA” quality with only
one minor surface flaw. Tom, an amateur gemologist, looks through a jeweler’s
magnifying glass and sees multiple flaws and that it is merely “A” quality. Because it is
a good price anyway, he says nothing and buys it. Betty says no to the proposal and the
jeweler won’t take back the ring. If Tom sues the jeweler for fraud regarding the
deceptive statements made by the jeweler, Tom will win.
The statutes enacted by the legislative branches of the federal and state governments are
organized by topic into code books. This is often called deified law.
Certified public accountants must comply with generally accepted accounting
principles.
A person with voidable title can pass good title to a good faith purchaser or good faith
subsequent lessee.
Article 4A of the Uniform Commercial Code establishes rules that regulate the creation
and collection of and liability for wire transfers.
In Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc., the
United States Supreme Court held that a state statute that prohibited a pharmacist from
advertising the price of prescription drugs was unconstitutional because it violated the
Freedom of Speech Clause.
The person who is entitled to the future interest in a reversion is called a remainder
beneficiary.
The Delaware antitakeover statute provides that an acquirer of a Delaware corporation
cannot complete a merger with the acquired corporation for one (1) year after
purchasing fifteen (15) percent or more of the Delaware corporation’s shares.
Antitrust defendants often opt to settle government-brought antitrust actions by entering
into a plea of nolo contendere in a government civil action.
Under community property laws, each spouse owns an equal one-half share of the
income both spouses earned during the marriage and one-half of the assets acquired by
this income during the marriage, regardless of who earns the income.
A covenant is an unconditional promise to perform.
An obligated bank that wrongfully refuses to pay a cashier’s check is liable to the
person who asserts the right to enforce the check for expenses, loss of interest resulting
from non-payment, and consequential damages.
If the buyer or lessee rejects the goods, there are no circumstances under which the
buyer or lessee may sell the goods on the seller’s or lessor’s behalf.
The unintentional confinement or restraint of another person without authority or
justification and without that person’s consent constitutes false imprisonment.