Identify four ways a trust can be terminated.
After her 18th birthday Lora may, by words or action, ratify a contract she made during
the previous year.
Kris, a shareholder of E-Max, Inc., claimed that the business was being mismanaged.
Kris notified the board of directors that the corporation has been wronged and asked the
board to bring suit in the name of the corporation directly. In response to Kris’ demand,
what actions may the board take? What could Kris’s response be to each alternative?
Larry wanted to buy a 1957 Cadillac once owned by Reggie Jackson. Larry entered into
a contract with the owner agreeing to pay $102,000. The owner subsequently changed
his mind. If Larry sues, what remedies are potentially available?
Discuss the concept of insurable interests.
In order for a plaintiff to win a case involving intentional infliction of emotional
distress, she must prove the defendant acted in an extreme and outrageous manner.
What are the three tests or elements used by the FTC to determine whether a particular
act is an unfair trade practice?
MagNet is a U.S. company based in Utah. It is negotiating to sell $4 million worth of
computer goods to a French company, Legran. MagNet’s attorney suggests that payment
be by a letter of credit. What is a letter of credit and why does MagNet’s attorney
recommend payment by letter of credit?
Tommy is going to have heart surgery. He is afraid that he will not survive, so he gives
his favorite ring to his friend, Rod. Rod is aware of Tommy’s apprehensions. Tommy
survives the surgery and wants his ring back. Who is entitled to the ring and why?
Identify and discuss the primary sources of contemporary U.S. law.
United States suffers trade deficits every year because the value of its imports
exceeds that of its exports.
Alfrieda purchased an ownership interest in a corporation. This gives her the right to
use the equipment owned by the corporation, as long as her usage does not interfere
with the normal operation of the business.
Murphy stops at a garage sale and purchases an oak rocking chair. Murphy and the
seller agree that Murphy will pick up the rocking chair the next day when Murphy will
return with a truck. That night, there is an earthquake and the rocking chair is
swallowed up by earth and totally destroyed. In this case, the seller had the risk of loss
and must refund the purchase price to Murphy.
Ron is an accountant who was contacted by Zebra Toy Company to prepare financial
statements. Zebra Toy Company told Ron that it wished to present these documents to
Lion Wholesalers, Inc., a large supplier of toys. If Lion is convinced that Zebra Toy
Company is financially solid, it will issue Zebra a large line of credit.
After Ron prepares the financial documents, Zebra presents the information to Lion
Wholesalers and also to Tiger Toy Company, another wholesaler of toys. Zebra wishes
to obtain a line of credit from Tiger as well as from Lion. If Ron committed a serious
error by overstating Zebra Toy Company’s financial soundness and the two creditors,
Lion and Tiger, are damaged as a result, can these third parties recover damages from
Ron? Explain.
Kalina is the CEO of Northfield Corporation. Who sets her compensation, and what
types of compensation would she likely receive in addition to her salary? Can
shareholders do anything to challenge her level of compensation if they think it is
unfairly high in comparison to average employee compensation within the company?