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In a corporation, a large number of investors may pool their assets to finance a large
business enterprise.
Sal was at home going through his normal workout when he bent his barbell bar. Sal is
a professional bodybuilder, and this fact is obvious from his appearance. Sal went to his
local sporting-goods store and was approached by a clerk wishing to assist him. Sal told
the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was
located. The clerk presented Sal with a bar that the clerk said "is just what you need for
your type of weight requirements." Sal paid for the bar and was returning home when
he stopped at a health food restaurant. The drink that he ordered had an unusual taste,
but the food establishment refused a refund. Sal became ill from the drink, which, as it
turned out, had a toxic substance in it. Sal had to be hospitalized. When Sal was able to
work out again, he attached the weights to the new bar and lifted the bar under his chin.
The bar snapped in the middle and severely cut Sal. Sal is angry about the drink and the
barbell. What are the applicable warranties involved? Does Sal have a cause of action?
Most states permit action to be taken by the board of directors without holding an actual
meeting.
A surety is never discharged if the creditor substitutes a different debtor.
Bankruptcy of only one of the partners does not cause dissolution of the firm.
The requirement of a sum certain in money is fulfilled even though the interest rate
changes at maturity.
The Securities Exchange Act of 1934 is concerned with the secondary distribution of
securities in the national securities markets and in the over-the-counter markets.
Under SEC Rule 504 of Regulation D, an issuer can offer and sell up to $2 million in
securities within a 12 month period without registration and without most of the
restrictions contained in Rules 505 and 506.
Sara Student wished to pay off her $5,000 student loan. If she sends in a check for
$3,000 and the creditor cashes the check, the debt will be fully satisfied provided the
check is marked "paid in full."
Negotiability is the characteristic that distinguishes commercial paper and instruments
from ordinary contracts.
The Fair Credit Reporting Act applies only to consumer credit.
Computer software licensing agreements include restrictions on the use of software and
give the licensor greater protection than that provided by copyright law.
When a party refuses to perform a contract when the time for performance arises, an
anticipatory repudiation has occurred.
A promise to pay an attorney a fee owed by a third person can be enforced without a
writing.
King Electronics, a retailer of video equipment, sold two DVRs to Larson, a
psychologist, for use in her professional practice, which was located in her home. The
sale to Larson was made on credit. King retained a security interest in the DVRs sold
but did not file a financing statement. Mills, another creditor of Larson, has asserted
that his lien on the two DVRs is superior to King's security interest. Is he right? As you
decide, remember to classify the DVRs as collateral in the hands of King and Larson.
A defined contribution plan is an employer commitment to make specific future
payments to participants upon retirement.
A letter of credit must be in writing and signed by the issuer.
Ordinarily, doing or promising to do what one is already under a legal obligation to do
is not consideration.
