Ramiro is dissociated from the partnership he helped form ten years ago. If his partners
want to continue the business, what must they do? Does it make any difference if the
dissociation was wrongful?
Tony signed a contract agreeing to purchase a used, high-powered boat for $10,000.
Prior to signing the contract, the sales representative explained that the boat motor was
guaranteed for six months for all labor and parts. The written contract contained nothing
about the warranty; however, it did have an integration clause in it. Tony had problems
with the boat motor, causing expensive repairs. Tony returned the boat to the sales
representative for the repairs, only to learn the salesman denied knowing anything about
a six-month warranty. If Tony sues, discuss the likely outcome.
Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer.
Charlene Brown has possession of a check made out to the order of Charlene Brown
(herself) which she received in payment for writing a manuscript for her publisher.
Charlene is a holder in due course and the publisher cannot claim any “real defenses to
payment. Charlene has an unconditional right to be paid for the check.
Common law, like statutory law, is prospective.
Nunnskys Retail sent out newspaper inserts advertising wool suits for $50. In fact, the
store had only two, out-of-style suits for sale at this price. Their other wool suits started
at $175. This constitutes bad faith in its advertising, so consumers may have protection
through state statutes.
If the FTC determines a business has violated the law, it will normally try to get the
business to voluntarily stop the activity.
The dock workers on Main Harbor were union members. They have been negotiating a
contract with management, so far unsuccessfully. Discuss what tactics they might use in
unison to gain a bargaining advantage, identify the statute that guarantees their rights,
and discuss the possible response by management.
Roger parked his car at a garage that has a large sign at the entrance saying, “This
garage is not liable for items stolen from a car.” This type of notice is referred to as an
exculpatory clause.
Discuss the four most important limitations on the power of federal administrative
agencies.
If a whistleblower successfully brings suit against a company that defrauds the
government, the whistleblower can receive 30 percent of the damages awarded to the
government.
Roger purchased a tennis racquet from Rafael. Roger can prove he is a BFP by showing
only that he gave value and acted in good faith.
Incorporators are required to sign the charter, deliver it to the proper state officials, and
purchase a certain percentage of the initial stock offering.
Fast Auditors prepared audited financial statements for Mega Company’s registration
statement in compliance with the 1933 Securities Act. John bought stock in Mega
Company. It was discovered that the financial statements prepared for the registration
statement contained some important omissions. John sued Fast Auditors to recover his
investment when Mega Company turned out to be a bad investment. What must John
prove to recover from Fast Auditors?
Rachel Retailer sends a preprinted purchase order offering to buy goods from Snidley
Supplier. Snidley acknowledges Rachel’s offer with a preprinted acceptance form. The
terms of the two forms do not mirror each other. To analyze whether an enforceable
contract exists, one must first determine whether the new language in the acceptance is
an additional term or a different term.
Define the common law. Discuss its conflicting goals and the doctrine created to serve
one of these goals.
Prime Products, Inc. was going to be able to ship the comforter Margaret ordered within
three weeks instead of the seven days it had originally promised. Prime must cancel
Margarets order and notify her that it can deliver within three weeks if she wants to
reorder.