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The right to sue for damages sustained from a defective product is reserved exclusively
to the buyer of such goods.
Most states permit action to be taken by the board of directors without holding an actual
meeting.
A thief or an embezzling officer cannot legally transfer title to a bearer instrument.
If an instrument is nonnegotiable, the rights of the parties are governed by the general
principles of contract law.
A common carrier transporting goods under a COD shipment is liable if it takes a check
in payment and the check bounces.
An American merchant who buys goods from a French merchant obtains a letter of
credit from an American bank. A French bank, upon the request of the American bank,
notifies the French seller that the letter of credit has been issued. In this case, the
American buyer is the issuer, the American bank is the correspondent bank, and the
French bank is the advising bank.
"Conglomerate" describes the relationship of equal companies engaged in similar fields
of business activity.
The holder of a claim that is the subject of a bona fide dispute may be counted as a
petitioning creditor.
The requirement of privity of contract to allow recovery in a sales contract has been
widely rejected.
Thomas, the holder of a check, presents it to the drawee bank for payment. If Thomas
endorses the check, Thomas warrants that the account of the drawer in the drawee bank
contains funds sufficient to cover the check.
An incompetent person may ordinarily avoid a contract in the same manner as a minor.
When a person picks out a specific necktie and purchases it, the transaction involves
identified goods.
Stock that is reacquired by the corporation that issued it is commonly called
"boomerang" stock.
If words and numbers contradict each other in a contract, the rule of construction favors
the words.
For tort liability to be imposed, the perpetrator of the tort must have acted with the
intent to do wrong.
Ulysses bought Whiteacre from Gordon but never recorded the deed. Gordon stayed on
the property as a tenant for three (3) years. Near the end of the three (3) years, Gordon
learned that Ulysses had never recorded the deed. Gordon advertised Whiteacre for sale
and Cheryl negotiated with Gordon thinking that Gordon was the owner. Finally, Cheryl
checked the records at the recording office and, finding no reason to question Gordon's
ownership of the property, purchased Whiteacre from Gordon. Cheryl recorded the deed
and Gordon fled with the purchase money. Meanwhile, Ulysses had failed to pay the
real estate taxes on Whiteacre for the three (3) years in question thinking it was the
responsibility of Gordon, the tenant. Ultimately, Cheryl and Ulysses disputed over the
ownership of the property. Decide the case between Cheryl and Ulysses. Also decide
whether Ulysses is responsible for the three (3) years of real estate taxes assessed while
Gordon occupied the property as a tenant.
