Legislation to protect the environment from precipitation containing high levels of
sulfuric or nitric acid, or acid rain, is aimed primarily at electric utility companies.
The liability of manufacturers and sellers of goods for a defective product or for its
failure to perform adequately may be based on one or more of the following:
negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability
in tort.
A PMSI is created in goods when a seller retains a security interest in the goods sold on
credit by a security agreement.
Duncan Supply has consigned goods to Huffman Hardware. Huffman’s creditors may
not take possession of the consigned goods to satisfy their claims against Huffman.
An expropriation, or nationalization, occurs when a government seizes foreign-owned
property or assets for a public purpose and pays the owner just compensation for what
is taken.
The Klodhoffer Corporation has assets amounting to $2,000,000 and needs additional
capital to finance expansion of its marketing operation. The board of directors decides
to promote an issue of $500,000 of common stock in order to raise capital. At the time
the stock is issued, Klodhoffer has 250 shareholders owning common stock. If
Klodhoffer is to trade the stock over the counter, does it need to register with the SEC?
With respect to horizontal privity, the strict liability in tort of manufacturers and other
sellers extends to only buyers, users, and consumers, but not to injured bystanders.
The impostor rule is an exception to the general rule that negotiation of any order
instrument requires a valid indorsement by the person to whose order the instrument is
payable.
A condition subsequent is a much more frequent occurrence than a condition precedent.
The word “merchantability” must be mentioned in a disclaimer of an implied warranty
of merchantability.