Bill would like to propose to the board of directors of Bizmarc, Inc., that the
corporation distribute one percent of its pre-tax yearly income to feed the poor. To
Milton Friedman and others, Bill’s proposal might be considered unethical, because it
violates the purpose for which the corporation was established.
Preferred stockholders do not have priority over corporate creditors in liquidation.
The UCC prohibits assignments of $5,000 or more.
Jared drives his car knowing that the brakes are defective and has an accident in which
the car is damaged and he is injured. He will likely be barred from suing the
manufacturer, because he voluntarily assumed the risk of the defective brakes.
Mike, a plumbing contractor, was hired to correct a stoppage in the sewer line at Sarah’s
house. During his work, he discovered numerous leaks in a rusty, defective water pipe
that ran parallel with the sewer line. To meet public regulations, the water pipe had to
be replaced either then or later, when the yard would have to be redug. Mike replaced
the water pipe and Sarah inspected the work daily and did not object to the extra work.
When Mike finished, Sarah refused to pay for the water pipe replacement since that was
not what she originally hired Mike to do and she had never specifically agreed to that
work. Sarah must pay Mike for his labor and materials costs for both the sewer and
water line repair.
A statutory lien arises solely by force of statute and includes a security interest and a
judicial lien.