If a buyer accepts a shipment of goods and later discovers a defect, acceptance can be
revoked.
Diana and Earl incorporate their computer technical support business as Fast Aid, Inc.
Diana contracts with Gina to respond to Fast Aids customer service calls on a
commission basis. What are the advantages and disadvantages to Fast Aid of classifying
Gina as an independent contractor rather than as an employee? Earl obtains a loan from
First National Bank and signs a promissory note for repayment of the amount without
indicating that he is doing so on behalf of Fast Aid. Fast Aid does not make enough
profit its first year to make payments on the loan. Charging default, the bank files a suit
against Earl for the unpaid amount. Earl responds that he was acting on behalf of Fast
Aid. Will the bank succeed against Earl? Why or why not?
An ordinary holder can recover nothing on an instrument that has been materially
altered.
Economic need generally is sufficient to constitute duress.
A summary judgment is granted only if there is no genuine question of law.
Usually, a lease terminates when its terms ends.
A contract written exclusively by one party and presented to the other party on a
take-it-or-leave-it basis is an adhesion contract.
To avoid strict product liability, a manufacturer must make a product entirely safe for
all uses.
Bowie, a certified public accountant, prepares and certifies Candy Products
Corporations financial statements. These statements are included in Candys registration
statement filed with the Securities and Exchange Commission before Candys offering
of securities. Dona buys a security covered by the registration statement. Based on this
transaction, Dona files a suit against Bowie under Section 11 and Section 10(b) of the
Securities Exchange Act of 1934. To succeed in the suit, what must Dona prove? Bowie
responds that Dona was not in privity with him and that even if she had been in privity,
she cannot prove his lack of due diligence. Can Bowie prevail on these grounds? Why
or why not?
Borealis Power Company is subject to mandatory workers compensation laws in the
states in which it does business. Chad and Dex work for Borealis as part of a crew that
travels to remote locations to repair downed power lines and other damaged equipment.
At a distant site, Chad is injured in an accident that is entirely Dexs fault. Chad files a
claim for workers compensation. Should the claim be granted? What would be
Borealiss best defense against it?
A court of appeals hears all of the same evidence that the trial court heard.
Under the Sarbanes-Oxley Act of 2002, accountants must dispose of working papers
relating to an audit or review.
An innocent professional is never liable for a co-professionals misconduct.
Joint ventures undertaken by competitors are not subject to antitrust laws.
If a contractual promise is not fulfilled, the person who made it may be required to
perform the promised act.