Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The laws governing franchising are primarily designed to protect franchisors from
dishonest franchisees.
Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under
a written lease with a twenty-year term, rent payable annually. The lease includes a
clause stating that Burgertown is responsible for making all necessary repairs, including
rebuilding the structure after its destruction by any cause beyond Andy's control. The
lease does not include a clause concerning its assignment. One day after the tenth rental
payment, Burgertown, without Andy's knowledge or consent, assigns its interest in the
lease to Chicken Hut Restaurants, Inc. Meanwhile, Andy dies and Dotty inherits Andy's
interest in the building. Without the knowledge or consent of either Burgertown or
Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the
building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a
suit against Earnest for the expense. Earnest responds that the lease has terminated. Is
Earnest correct? If so, when did the lease terminate? If not, is Earnest liable for the cost
of rebuilding the structure? Why or why not?
Under an exclusive-dealing contract, a seller promises a buyer a certain territory in
which the buyer will have no direct competition.
A security agreements may provide for coverage of after-acquired property.
In May 2013, National Biotech Corporation generally advertises that it will make a $4
million offering of stock in June. National makes the offering as advertised and, ten
days after the first sale, notifies the Securities and Exchange Commission (SEC). All
buyers of the stock are given material information about the company, its business, and
the stock. Before the end of the year, the offering is completely sold out. The buyers
include forty unaccredited investors and fifty accredited investors. National does not
register the offering. The SEC files a suit against National, seeking civil sanctions on
the ground that this offering was not exempt from registration. National argues that the
applicable exemption is Rule 505 of Regulation D of the Securities Act of 1933 and that
because of this exemption, any resale of the stock is also exempt. Who is correct?
Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines
Winery for $1,200. The contract states that delivery is to be made at Ellen's residence
"on or before May 1, to be used for daughter's wedding reception on May 2." On May
1, Grapes & Vines's delivery van is involved in an accident, no wine is delivered that
day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys
the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes &
Vines tenders delivery of the wine at Ellen's residence. She refuses tender. Grapes &
Vines sues her for breach of contract. How is the court most likely to rule?
Even if the terms of a contract express such uncertainty of performance that the
promisor has not definitely promised to do anything, the promise binds the promisor.
The Bill of Rights protects individuals against types of interference by the federal
government.
A bank may contractually shift to the customer the risk of forged checks created by the
use of facsimile or other nonmanual signatures.
A constructive trust is "constructed" by a property owner to fulfill certain unique
functions outside the usual bounds of a trust.
All states' laws permit minors to disaffirm contracts.
Crimes occurring in a business context are popularly referred to as white-collar crime.
A corporate director is an "owner" of the corporation.
33. A state court can dissolve a corporation for committing fraud to the state during
incorporation.
A remedy is the relief provided to an innocent contracting party when the other party
breaches the contract.
Money or property, including land, remedies at law.
A warehouse receipt is a receipt signed by a warehouse for goods stored in a
warehouse.
