Ethical violations can cause lasting detriment to a company’s ability to do business
through impacts on the company’s reputation.
An instrument may be transferred by negotiation or by assignment.
A debtor must have rights in the collateral for a security interest to attach.
Under the Equal Credit Opportunity Act, it is unlawful to discriminate against an
applicant because all or part of the applicant’s income is obtained from a public
assistance program.
The order or bearer character of a paper is determined as of the time when the
negotiation is about to take place.
Forbearance may constitute consideration.
Companies whose securities are listed on a national securities exchange and unlisted
companies with assets in excess of $10 million and 500 or more shareholders are
exempt from the reporting requirements of the Securities Exchange Act of 1934.
In general, transferees who are aware of facts that would make a reasonable person ask
questions are deemed to know what they would have learned if they had asked
questions.
Presentment occurs when the primary party refuses to pay an instrument according to
its terms.
A surety may not raise the defense of mistake.
Subornation is the right of a party secondarily liable to stand in the place of the creditor
after making payment to the creditor and to enforce the creditor’s right against the party
primarily liable in order to obtain indemnity from such primary party.
Voting trusts are usually illegal.
Oswaldo Enterprises began to do business in a small East African nation. The
representatives of Oswaldo bid on government contracts. Although Oswaldo was by far
the lowest bidder and offered a superior product, the company was not awarded a
contract. Oswaldo officials learned after inquiring that the company would have to give
substantial sums of money to high-level government officials in order to receive a
contract. Oswaldo officials are considering this as a necessary cost of doing business,
but they are concerned about violating U.S. law. Discuss the implications of this under
the Foreign Corrupt Practices Act.
In general, any form of property that may be sold or conveyed may be mortgaged.
In almost all states, a periodic tenancy is implied if the tenant, with the consent of the
landlord, stays in possession of the property after a tenancy for years.
Commercial General Liability (CGL) policies apply to product liability cases, actions
for wrongful termination of employees, sexual harassment cases, damages caused by
business advertising or employee dishonesty, and trademark infringement suits.
A court with limited jurisdiction can only hear certain types of cases.
The UCC statute of limitations applies to actions brought for remedies on the breach of
a sales contract.
Partners have the implied authority to bind the partnership by contracts of surety for
any and all purposes.