A franchisor’s decision to terminate a franchise may be made in the normal course of
business operations.
Scienter exists if a party makes a statement that he or she believes to be scientifically
verifiable.
Authority declared in clear, direct, definite terms is express authority.
Recreation & Sports Equipment Corporation sells a product that is capable of seriously
injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical
duty to take this product off the market? What conflicts might arise if the firm stops
selling this product?
When there is a direct conflict between a federal and a state law, the state law is
rendered invalid.
In no states are communications between an accountant and his or her client privileged.
A debtor’s vehicle is never exempt from satisfaction of a judgment debt.
Statutory law includes state statutes and ordinances passed by cities and counties.
An ethics program can clarify what a company considers to be unacceptable conduct.
Under their police powers, states can regulate only public activities, such as political
demonstrations.
The intention to enter into a contract is judged by objective facts as interpreted by a
reasonable person.
For an agent’s implied authority to be effective, a principal must ratify it.
A lender’s failure to comply with federal mortgage disclosure requirements extends the
borrower’s right to rescind the loan to no more than seven days.
Borrowers can avoid the clear meaning of terms in financing documents.
Privity of contract establishes the basic concept that third parties have no rights in
contracts to which they are not parties.
Steering and targeting occur when a lender manipulates a borrower into accepting a
loan product that benefits the lender but is not the best loan for the borrower.
Fresh Stuff Company agrees to sell one hundred cases of uncooked burgers, cut
potatoes, shredded lettuce, sliced tomatoes, and other specific food items to Good Eats,
Inc. The goods, which Good Eats expressly requires to be fresh, are to be shipped
“F.O.B. Good Eats distribution center in Brooklyn, NY.” When the goods arrive, Good
Eats rejects them and informs Fresh Stuff, claiming that the foods do not conform to
Good Eats’s freshness requirementthe food is old, stale, spoiled, and moldy. A few hours
later, the cases are destroyed in a fire at Good Eats’s distribution center. Will Fresh Stuff
succeed in a suit against Good Eats for the cost of the goods?
Expropriation occurs when a government seizes private property for a proper purpose
and awards just compensation.