The contact rule does not require that the accountant meet or communicate with the
third party to establish a relationship equivalent to privity.
A defined contribution plan is an employer commitment to make specific future
payments to participants upon retirement.
The parties may agree that the adequacy of performance under a contract is to be
determined by a third party.
Bylaws are typically adopted by the managers of a corporation.
A limited liability company is identical to a Subchapter S corporation.
A license is different from an easement in that it is a personal, revocable privilege to do
something on the land of another.
Substantial impairment requires proof that goods are worthless.
A buyer with a voidable title cannot pass on valid title to a subsequent good faith
purchaser.
If a bank improperly refuses to make payment of checks for which its customer has
sufficient funds on deposit, it is liable to the drawer for damages sustained by the
drawer in consequence of such dishonor.
Under the common law, the reason a landlord terminates a lease by notice is immaterial.
A party must mitigate damages at all costs.
Generally, a bailment agreement does not contain all the elements of a contract.
In applying the “foreign substance/natural substance” liability test in the sale of food or
drink, courts hold that there is liability if the seller does not deliver to the buyer goods
of the character that the buyer reasonably expected.
Under Revised UCC Article 9, a financing statement must be signed by the debtor.
The term dumping refers to the sale of damaged goods in a foreign market to cut the
losses that would otherwise be caused by the damage.
An acceptance of goods can be done either expressly or by implication.
The burden of proving the existence of an agency relationship rests on the person who
seeks to benefit by such proof.
Unless otherwise agreed by the parties, payment by a buyer requires payment either in
cash or by certified check.
Pamela was the agent in charge of distribution and collections for the Coble Dairy
Products Cooperative. Thrower operated a grocery store and purchased dairy products
from Coble. Pamela made false invoice sheets, showing delivery to Thrower of greater
quantities than Thrower actually had ordered or received. Pamela collected from
Thrower on the basis of these increased amounts, and then kept for herself the
difference between the increased amounts and the amounts that should have been
charged. When Thrower learned of this, he sued Coble for the excess payments he had
made. Coble denied that Pamela was its agent in making excess collections. Will
Thrower win?
The Securities Act of 1933 imposes civil liability for making false or misleading
statements in a registration statement.