A treaty is a contract or other agreement between two or more nations that must be
ratified by the United Nations to take effect.
Whether a contract’s limitation-of-liability clause will be enforced depends on the type
of breach that the clause excuses.
The participants in a joint venture have more implied and apparent authority than the
partners in a partnership.
Owen plans to open Owen’s Pets Store, a pet sales and pet supplies outlet, and to hire
Quimby and Ruth. Owen will invest only his own money. He does not expect to make
any profit for at least two years and to make almost no profit for the first three years,
but he hopes to expand eventually. Which form of business organization would be most
appropriate? What are the chief characteristics, advantages, and disadvantages of this
form of business organization? If Owen wants to obtain additional capital to expand the
business, but does not want to lose control of the firm, what is his best option?
Some states permit a corporate board to have fewer than three directors.
An express warranty cannot be limited.
If a contract is illegal, a court will not enforce it.
On a lessee’s insolvency, the lessor can stop delivery of the goods.
In contract law, “consideration” refers to the time that a party takes to evaluate a deal.
In a consolidation, the consolidating corporations become subsidiaries of the new
corporation.
An instrument payable to two persons jointly requires the indorsement of only one of
the payees for negotiation.
Ethical standards based on religious teachings tend to be absolute.
An Internet service provider cannot be held liable for disseminating defamatory
remarks under any circumstances.
Before a discharge is granted, a debtor can transfer property or make a payment in
preference to one creditor over another.
A warranty against infringement is a promise by the seller that the product was con-
structed in a workmanlike manner.
A motion for a judgment notwithstanding the verdict seeks to set aside a verdict and
enter a new verdict in favor of the non-prevailing party.
Rescission is the dissolution of a contract that returns the parties to the positions they
held before the contract.
A majority shareholder does not owe a fiduciary duty to minority shareholders under
any circumstances.
A free-writing prospectus may be used before the Securities and Exchange Commission
completes its review of a related registration statement.
An insured’s lack of an insurable interest is an absolute defense against payment.