Under Revised Article 3, a promise to pay only out of a particular fund will destroy the
negotiability of an instrument.
Presenters’ warranties are exactly the same as transferors’ warranties.
The distinction between horizontal and vertical restraints often determines whether a
restraint is illegal per se or should be judged by the rule of reason test.
The Magnuson-Moss Warranty Act applies to all sales of goods covered by the Uniform
Commercial Code.
A joint venture is necessarily of short duration.
The test for duress is objective and the act must be classified as a tort or a crime in
order to be wrongful.
A creditor beneficiary is a type of incidental beneficiary.
All states have authorized the formation of limited liability companies.
Goods bearing a counterfeit mark may be destroyed without compensation to the owner
of the goods.
Giving a deed to an escrow agent may be sufficient delivery of a deed.
The Code provides that for checks, a reasonable time for demand for payment is sixty
days, after which a purchaser should be on notice the paper is overdue for the purpose
of becoming a holder in due course.
Although in recent years certain developed countries, such as the United States, have
made significant progress in controlling pollutants, this is not the case worldwide.
Upon the seller’s breach, the buyer must protect himself by obtaining “cover” or he is
barred from any other remedy under the Code.
Homemade Soup Co. has advertised their soup in certain magazines using photographs
showing bowls of their soup but with pebbles at the bottom of the bowl. The pebbles
were used to displace the soup in the bowl, forcing the vegetables and meat to the
surface. This photographer’s trick made the soup appear heartier than it was. An FTC
staffer is thumbing through the latest edition of her favorite magazine. She notices the
Homemade Soup Co. ad and goes to her kitchen, opens a can of Homemade’s soup and
decides that her bowl of soup looks nothing like the one in the ad. What are the steps
the FTC would take to proceed against Homemade Soup Co.?
An ordinary bailee becomes liable to the bailor for any loss or injury to the goods,
regardless of the cause and without regard to the question of his care or negligence.
If shares are issued with no par value, the entire price must be allocated to stated
capital.
A frequently used device to protect domestic business and achieve other social and
political goals is the tariff, which is a duty imposed on goods moving into or out of a
country.
Factors in determining whether a person acting for another is an employee or an
independent contractor include the kind of occupation, the skill required, which party
supplies the tools, and whether payment is by the job or by time worked.
A trust can only be created by a written document, although no particular words are
necessary.