An agreement between real estate brokers to never charge a commission less than 6% is
not an example of price fixing.
A payee or indorsee whose name is misspelled may indorse the wrong name, the correct
name, or both.
A buyer returning to the seller a raincoat that shrank in the rain is revoking acceptance.
Ex post facto laws can be adopted by either states or the national government.
The Uniform Arbitration Act requires a written agreement to arbitrate an issue.
When a corporation acts in excess of or beyond the scope of its powers, the
corporation’s act is described as “ultra vires.”
In a residential lease, it is commonly held that there is an implied warranty of
habitability.
The shares of a close corporation are always held by a single individual.
Freedom from liability to third persons dealing with the franchise holder is one of the
main reasons that franchisors grant franchises.
Most states permit action to be taken by the board of directors without holding an actual
meeting.
Arthur was looking for a Father’s Day gift for his dad, Tony. Tony was a cigar smoker
but Arthur was a nonsmoker. Arthur went to a cigar store and was looking around when
the proprietor suggested Arthur try a new imported cigar. The proprietor touted this new
cigar as “just like the great Cuban cigars.” Arthur was reluctant but did light one of the
cigars, which had a pleasant aromatic smell and took about five to six minutes to be
consumed. On this basis, Arthur bought a box of the cigars and presented them to his
father as a gift. When the father smoked one of the cigars, it gave off an acrid smell and
was completely consumed in less than two minutes. When Arthur saw this, he was very
upset and asked his father to try another. The same situation was repeated with the acrid
odor and the cigar burning down very quickly like a cigarette.
After Arthur tried unsuccessfully to return the cigars for a refund, Arthur filed a small
claims court action against the store. The case was based on the failure of the purchased
cigars to conform to the sample, breach of the implied warranty of merchantability, and
the misleading statement “just like the Cuban cigars.” Discuss the probable outcome of
the case.
If the debtor is generally not paying debts as they become due, the debtor may be
subject to an involuntary bankruptcy petition.
A special indorsement consists of the signature of the indorser and the words
identifying the person to whom the indorser makes the instrument payable.
Contracts may be discharged by the joint action of both contracting parties or, in some
cases, by the action of one party alone.
An output or requirement contract is not enforceable unless the parties include an
estimate of prospective amounts.
A contract never can be both executory and unilateral.
A third person dealing with the agent of a disclosed principal ordinarily intends to make
a contract with the principal, not the agent.