A bank may not charge a postdated check against a customer’s account unless the
customer notifies the bank, in a timely manner, to pay the check before the stated date.
Perfection is usually accomplished without filing a financing statement.
Employers can avoid liability for employment discrimination on the basis of
after-acquired evidence of an employee’s misconduct.
A target corporation is a corporation being acquired through the purchase of a
substantial number of the voting shares of its stock.
A surety cannot assert the principal debtor’s bankruptcy as a defense to avoid liability
on the debtor’s obligation.
Merchants are not required to warrant that the goods they sell are fit for their ordinary
purpose.
Best Yogurt Corporation orders refrigeration equipment from Cold Storage, Inc., which
has an unperfected security interest in the equipment until it is paid for. Meanwhile,
Best Yogurt takes out a loan from Dependable Credit, Inc., subject to a security interest
in Best Yogurt’s building and equipment, which Dependable Credit perfects. Best
Yogurt files a petition in bankruptcy for relief in a liquidation proceeding. If the petition
is granted, in what order will the creditors be paid?
A federal administrative agency must alert small businessesthrough advertising in trade
journals, for exampleabout forthcoming regulations.
If a member’s dissociation from a limited liability company is rightful, normally the
dissociated member has the right to force the LLC to dissolve.
An accountant can avoid liability by proving that his or her negligence was only the
proximate cause of the client’s loss.
When the parties terminate an agency, it is the principal’s duty to notify any third parties
who know of the existence of the agency that it has been terminated.
A franchisee is generally legally independent of the franchisor.
The shareholder’s appraisal right does not extend to share exchanges and sales of
substantially all of the corporate assets.
A lessee is a party who transfers a right to the possession and use of goods under a
lease.
Exceptions to the automatic stay include investigations by a securities regulatory
agency, which can continue despite the suspension of other actions against a debtor the
moment a bankruptcy petition is filed.
If a buyer breaches a contract while the seller is still in possession of the goods, the
seller can resell the goods and hold the buyer liable for any loss.
A board of directors’ response to a takeover attempt must be rational in relation to the
threat posed.