Antitrust legislation was created because of the belief that competition leads to lower
prices.
No contract can prohibit delegation of the duties of the contract.
Under the Sarbanes-Oxley Act, accountants must retain working papers relating to an
audit or review for a certain period of time.
Under the Check Clearing in the 21st Century Act, a bank has to credit a customer’s
account as soon as the bank receives the funds.
A check is not negotiable if it is payable on demand.
A franchise exists when the owner of a trademark licenses its use to another party to sell
goods or services.
An attorney may be liable in negligence to any third party who the attorney knows will
rely on the attorney’s work.
An agency relationship created for an illegal purpose is enforceable.
The terms “due process” and “equal protection” mean the same thing.
The dangers associated with using sharp knives are so commonly known that
manufacturers need not warn users of those dangers
A business trust is created by a written trust agreement.
A novation does not require the extinguishing of the old obligation.
The method of perfecting a security interest does not depend on the classification of the
collateral.
Defamation is one person’s use of another’s name without permission.
Recovery in a product liability case may be limited when it can be shown that the
plaintiff misused the product.
Federal law does not prohibit discrimination on the basis of gender in assessing an
employee’s education, training, or experience.
After the first board, the directors are chosen by the corporate officers.
Pam borrows $5,000 from Quality Auto Sales to buy a car. When Pam does not pay the
loan or return the car, Quality wants to transfers the right to the payment to Rapid
Collection Agency. Rapid agrees to pay Quality for this right, but for a price that is less
than the amount owed. Can Quality transfer this right to Rapid without Pam’s consent?
If so, and Quality committed fraud in the deal with Pam, could Pam legitimately refuse
to pay Rapid? Explain.
If a sale involves crops that are to be harvested within twelve months, identification
takes place when the seeds for the crops are purchased.