Under a life insurance policy, in the absence of contractual exclusion, any cause of
death is one of the insurer’s risks.
Under the fictitious payee rule, the payee’s indorsement is not treated as a forgery, and
an innocent holder can hold the maker or drawer liable on the instrument.
Attempted monopolization is a violation of antitrust law.
Directors cannot use corporate funds or confidential corporate information for personal
advantage.
Credit can be denied solely on the basis of race.
A buyer has an insurable interest in identified goods only if he or she has title to the
goods.
If a principal ratifies a contract without knowing all of the facts, the principal can
rescind the contract.
A seller has an insurable interest in goods as long as he or she retains title to the goods.
Even if a promissory note is incomplete at the time a maker signs it, the maker is still
obligated to pay.
When more than one party claims an interest in the same collateral, a perfected secured
party’s interest has priority over the interest of most other parties.
If a customer’s debit card is lost or stolen and used without his or her permission, the
customer shall be required to pay no more than $50 in any event.
Any federal, state, or local affirmative action program that uses racial or ethnic
classifications as the basis for making decisions is subject to strict scrutiny by the
courts.
For a union election to be held, at least 30 percent of the workers to be represented must
support a union or an election on unionization.
When dissolution takes place by voluntary action, the members of the board of directors
are responsible for winding up the affairs of the corporation.
In the context of Section 16(b) of the Securities Exchange Act of 1934, insiders include
officers, directors, and large stockholders of Section 12 corporations.
Natural Food Corporation proposes to combine with Organic Produce, Inc., and asks
Natural Food shareholders to vote on the proposal. Phoebe, a Natural Food shareholder,
votes against it, but is outvoted by the other shareholders. Is there an action that Phoebe
can take to avoid being forced to go along with the transaction? If so, what can she do?
After the combination, Organic Produce ceases to exist. Natural Food is the surviving
firm. What type of combination is this?
For an insurance contract to be binding, consideration in the form of a premium must be
given.
Yoshi contracts with Zach to buy a certain pub, Aficionado’s, for Yoshi, who asks Zach
not to reveal her identity. Zach makes a deal with Burcet, the owner of the pub, and
makes a down payment. Yoshi fails to pay the rest of the price, and does not pay Zach
for his services. Does Zach have any recourse against Yoshi? If so, on what basis and to
what extent?
A target corporation’s attempted takeover of an acquiring corporation is referred to as
the poison pill defense.