Chapters 11 and 13 are liquidation chapters.
Doyle contributed $10,000 when he became a general partner in the existing partnership
of R & Z Heating. If Albert wins a judgment for $25,000 against R & Z on a claim that
was incurred before Doyle became a partner, Doyle shares joint and several liability
with his new partners for the whole obligation.
To be a close corporation, the business must be small, with no more than 20 owners and
no more than $500,000 in gross annual income.
Company policy of PushOne, Inc. is to block the company name and telephone number
on potential customers Caller ID systems so they wont know the call is from a
telemarketer. This policy violates FTC rules.
Reed, a 15-year-old, has run out of money while on a trip away from home. Martha
gives him food, a place to sleep, and his bus fare home, in exchange for Reed’s promise
to pay $200 after he got home. Is Reed’s promise enforceable?
Briefly discuss a patent, copyright, and trademark.
The chain of Mega Hardware stores agreed with Lock Tight Manufacturing not to carry
any brand of locks and door handles other than those manufactured by Lock Tight.
Mighty Lock threatened to sue for antitrust violations. On what basis and under what
statute(s) would Mighty Lock sue? What factors would a court consider in deciding the
case?
Victor purchased $1 million of insurance on his home even though the house was only
worth $500,000. Victor’s house was destroyed by lightning. Under the insurance policy,
Victor will be able to recover $1 million.
Lori works for Big Corporation as an “at will” employee. Richard, owner of a small
store, offers to pay Lori much more money if she will leave Big Corp and work for his
store. When Lori starts to work for Richard, Big Corp correctly claims Richard is liable
for tortious interference with a contract.
Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports
Unlimited at a cost of $800. On June 1, Sports Unlimited shipped standard white tennis
balls, but Wimble rejected them. Wimble bought the same number of pro-quality
luminescent orange balls from another supplier the same day for $650. In a suit against
Sports Unlimited, Wimble may recover $800.
There is a trend for boards of directors to be made up of more independent directors
who are less likely to simply go along with whatever the CEO wants.
Even though a car has an obvious dent in the rear quarter panel, the salesperson tells a
potential customer, “This car has never been in an accident. The salespersons statement
creates a valid express warranty.
The age of majority to contract in all states is 21.
TriColor, Inc. purchased a piece of land from HBC, Inc. Hazardous waste was
subsequently discovered on the land. Even though TriColor did nothing illegal, it may
be liable under CERCLA for the cleanup costs.
The UCC does not apply to a contract for the sale of goods if the value of the goods is
less than $500.
A finding by a court that a managers decision had a rational business purpose does not
necessarily protect the manager from a finding that he breached a duty of care.
Uncle Brandon promises to give his motorcycle to you at the end of the month. This
transaction is governed by UCC, Article 2, because a motorcycle is within the definition
of “goods.
Alex worked for years for MegaCorp. During his employment with MegaCorp, he
learned a great deal of confidential information and knew that if this information got
into the hands of competitors or the general public, MegaCorp could suffer great
business losses. Alex claims that he was wrongfully fired by MegaCorp and accordingly
he believes he has no obligation to MegaCorp to keep any information he acquired with
them as confidential. MegaCorp claims that Alex is under a continuing duty to keep
confidential information secret, even though he is no longer with the company. Who is
right? Why?