When parties contract expressly for a particular subject matter, the contract is
discharged if the subject matter is destroyed through no fault of either party.
State laws that attempt to indemnify corporate directors against personal monetary
liability for gross negligence are void as contrary to public policy.
The two most common instruments used to provide the capital structure of a
corporation are stocks and bonds.
Employers may avoid liability for “hostile work environment” sexual harassment by
following a program that includes expressing strong disapproval of such conduct,
advising employees how to inform the employer of complaints, and disciplining
wrongdoers.
Preferred stock cannot have priority over common stock with respect to dividends.
An insurer’s bad faith refusal to pay a claim generally is considered to be any frivolous
or unfounded refusal to comply with the demand of a policyholder to pay according to
the policy.
Administrative agencies are, in effect, a fourth branch of the government.
Workers’ compensation statutes provide the exclusive remedy for employees who are
covered by such statutes and who suffer job-related injuries.
In dealing with the corporation, directors act in a fiduciary capacity.
In general, any form of property that may be sold or conveyed may be mortgaged.
Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner, entered into a
contract that provided that Franklin would sell Gordon fifty World War II battleship
models at Franklin’s cost of $2.95 each, plus a reasonable profit. Gordon brought suit to
enforce the contract against Franklin, who refused to deliver the models. Franklin
claimed that there was no contract because of indefiniteness. Is Franklin correct?
When improper collection methods are used, it is no defense to the creditor that the
improper acts were performed by an agent, an employee, or any other person acting on
behalf of the creditor.
Negligence can be proven without showing actual damage.
Because transfer of value is essential to a valid contract, contracts cannot arise in the
performance of personal services.
Limited liability is not a feature of general partnership law.
A buyer who breaches a contract after making a down payment generally will be
subject to the rule that the seller may retain the full down payment as damages.