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In approximately 50% of all bankruptcies no unsecured creditors receive any payments.
In order to satisfy the statute of frauds, all partnership agreements must be in writing.
A registration certificate for a partnership's fictitious name contained the names of
Barry, Boyd, and Swartz. Cruise extended credit to the firm in reliance in part on the
certificate that named Swartz as a partner. Swartz, in fact, had no knowledge of the
certificate and never had agreed to be a partner. Because of Cruise's reliance on the
certificate and the statement that Swartz was a partner, Swartz has a partner's liability
insofar as Cruise is concerned.
Commercial exploitation is a form of invasion of privacy.
The assignments of the right to money always gives the assignee the right to collect and
keep the funds.
Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at
a cost of $350 and informed Nelson that her computer was ready. Before Nelson came
to pick up her computer, ABC was burglarized and Nelson's computer was taken. ABC
had a commonly-used alarm system that was operating properly on the night of the
burglary, and all the doors and windows were properly secured. Nelson sued ABC for
the cost of the computer. ABC denied any liability and counterclaimed for the $350 in
repairs. Who will win?
When persons enter into an agreement, it is presumed that they intent the agreement to
have some effect.
Revised UCC Article 3 refers to drawers, indorsers, and accommodation parties as
'secondary obligors."
Some of the powers delegated to the national government still may be exercised by the
states.
A check is a particular kind of draft.
An agent is distinguished from an ordinary employee in that employees are hired to
represent the employer in dealings with third persons.
All courts hold that when an agreement requires satisfaction of the other party regarding
the acceptance of an act, a reasonable person standard is used.
The Railway Express Agency delivered a shipment of goods to Lorraine. Payment for
the goods was made with a certified check, payable to the order of the Railway Express
Agency. The check was drawn by Lorraine on the First National Bank of Detroit. Later,
the bank refused to pay the check when it was presented by Railway Express, the
holder, because the bank had become insolvent and stopped doing business. The
Railway Express Agency sued Lorraine. Lorraine claimed that she was not liable on the
check because it was certified. Is she correct?
Rule 10b-5 only applies to registered securities.
If an instrument is negotiable, it is governed by Article 2 of the UCC.
An executory contract is an agreement by which something remains to be done by one
or both parties.
A defrauded buyer may avoid the contract and recover damages.
If an instrument is payable to bearer, it may be negotiated by transfer of possession
alone.
Ping was the president and chairman of the board of directors of Oh Imports, Inc. Ping
was also a major shareholder. Acting as president, Ping negotiated a series of contracts
that caused the corporation serious economic losses. In this role, Ping failed to exercise
the care of a reasonably prudent person acting in similar circumstances. When
substantial economic losses began to pile up, Ping insisted that the corporation breach a
contract with Ory in favor of a larger contract that was later entered into with
Magnificent Enterprises. Ping hoped to reverse Oh's economic fortunes through this
contract with Magnificent, but the attempt failed. Oh then became insolvent. Ultimately,
the corporation failed. Two law-suits were initiated against Ping. In the first, a creditor
of Oh who never was paid because the business failed sued Ping alleging that the
negligence of Ping had caused Oh to fail to pay the creditor what was owed. The second
lawsuit instituted by Ory claimed damages from Ping because Ping caused Oh to breach
its contract with Ory. Decide both lawsuits.
