An auctioneer is free to withdraw the goods from sale if the sale is advertised or
announced in explicit terms to be without reserve.
Under the statutes in most states, if Marilyn and George form a corporation with
Marilyn as president and George as treasurer, Marilyn cannot also be corporate
secretary.
The concept of sovereign immunity provides that a nation’s judicial branch should not
question the validity of the actions a foreign government takes within its own borders.
Community property does not include a ring owned by the wife prior to the marriage.
The Action Corporation and the Braker Corporation combine into the Action
Corporation. This is a consolidation.
The Securities Enforcement Remedies and Penny Stock Reform Act of 1990 gives the
SEC power to issue cease and desist orders and to impose criminal fines up to $1
million.
At common law, an employee at will can be dismissed either with or without cause at
any time unless the employee has a special circumstance, such as being represented by
a labor union.
The court has the sole right to accept or reject a Chapter 11 plan of reorganization.
Professor Glass is hired by Towers University to teach business law at a salary of
$3,000 per month. After school has been in session for two months, the Business
Administration Building is destroyed by fire. The University refuses to pay him any
further salary, claiming they are discharged from their obligation of performance. Is the
University discharged from its obligation of performance? Is Professor Glass
discharged from his obligation of performance? Explain, citing the legal principles
involved.
Liquidated damages are an equitable remedy.
A valid assignment requires that notice be given to the obligor.
Under the RUPA, a dissociated partner is not liable for a partnership obligation incurred
more than two years after dissociation.
In building a $30,000 addition to the Murphys’ house, the contractor used the wrong
flooring, causing the Murphys $2,000 in damages. Under the substantial performance
doctrine, the contractor’s performance is substantial and therefore he is entitled to the
contract price of $30,000, but if the deviation from the specifications were considered
material, the Murphys would not have to pay for the addition.
Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that
he’ll take it. They now must get together and write a memorandum because it is a sale
of goods for over $500.
Under exemptions in the Bankruptcy Code, a debtor may keep both $21,625 in equity
in a residence and up to $3,450 in equity in a motor vehicle.
The Internal Revenue Service allows taxation of certain corporations to be similar to
that of partnerships.
Edward’s Excursions Inc. filed for Chapter 7 bankruptcy. It has $80,000 in equity and
has the following debts outstanding:
$50,000 to Arthur secured by a boat worth $25,000.
$30,000 to Bradley secured by a truck worth $30,000.
$20,000 to Clarence unsecured.
The month before Edward closed and filed for bankruptcy, his employees earned
$4,000 but did not get paid. Edward’s owes $4,000 in back taxes. In the process of
administering the estate, the trustee paid $5,000 in attorney fees. In what order will
these claims be paid?
A blank indorsement converts order paper to bearer paper and leaves bearer paper as
bearer paper.
Darrell goes to lunch with an office equipment salesman. After drinking two beers and
eating a Reuben sandwich, Darrell signs a contract to purchase a $1200 machine for the
office. Two hours later, he has second thoughts and decides a different machine might
be a better buy, so he calls the salesman and wants to disaffirm the contract based upon
intoxication. Darrell can avoid the contract on this basis.
All furniture, television sets, and appliances purchased by a minor for her apartment
would be considered necessaries.