The Sarbanes-Oxley Act makes it a crime for any person to knowingly alter, destroy,
mutilate, conceal, or create any document to impair, impede, influence, or obstruct any
federal investigation.
A corporation cannot enter into or enforce contracts.
Discharge by impossibility requires objective, rather than subjective, impossibility.
In terms of an order to pay a draft or a check, the language of the order may be general,
and need not contain the word “pay.”
Section 5 of the Federal Trade Commission Act covers conduct that violates the spirit of
the Sherman Act or the Clayton Act.
A strategic alliance allows participating companies to reduce risks, share costs, combine
technologies, and extend their markets.
When a target corporation buys back stock at a premium over fair market value, the
payment is called “greenmail.”
A whistle-blower can recover an award even if they were a co-conspirator in
perpetrating the fraud.
Even though it involves a nonfederal subject matter question, a case may be brought in
federal court if there is diversity of citizenship.
Many entrepreneurs who begin new businesses choose the limited liability company as
their legal form for conducting business.
Common carriers are liable for damage to goods caused by an act of God.
If the parties do not agree to a specific time, title passes to the buyer when and where
the seller’s performance with reference to the physical delivery is completed.
If the Equal Pay Act of 1963 is violated, the employer must increase the wages of the
employee who was discriminated against in order to remedy the discrimination.
If two or more secured parties claim an interest in the same collateral, but neither has a
perfected claim, the first to attach has priority.
The Federal Trade Commission (FTC) is the federal trade administrative agency that is
primarily responsible for regulating meat, poultry and other food products.
Transfer warranties cannot be disclaimed with respect to checks, but they can be
disclaimed with respect to other instruments.
Shareholders of professional corporations are often called limited partners.
In a “manager-managed” limited liability company, members who are not managers
have no rights to manage the limited liability company.
The European Union represents more than 500 million people and a gross community
product that exceeds that of the United States, Canada, and Mexico combined.
A contract is created when the offeror makes the offer.
Under the objective theory of contracts, the subjective intent of a party to enter into a
contract is irrelevant.
The minor’s duty of restitution is based on the rationale that if a minor had to place the
adult in status quo upon disaffirmance of a contract, there would be no incentive for an
adult not to deal with a minor.
The goals of the United Nations are to maintain peace and security in the world,
promote economic and social cooperation, and protect human rights.
Anti-assignment clauses are usually given legal effect.
Today, in most states of the United States, the courts of law and equity have been
merged into one court.
The drawer’s failure to report a forged or altered check to the bank within one year of
receiving the bank statement and cancelled checks containing it relieves the bank of any
liability for paying the instrument.
In a pro hac vice divorce, the parties do not have to hire lawyers to represent them;
instead, they may represent themselves.
A lawsuit brought on behalf of a corporation, but initiated by a shareholder because the
board of directors and officers fail to bring it, is called a derivative suit.
An accommodation party may sign an instrument guaranteeing collection rather than
payment of an instrument. In this situation, the accommodation indorser is primarily
liable on the instrument.
One disadvantage of a sole proprietorship is that the sole proprietor is legally
responsible for torts his or her employees commit in the course of employment.