Due care must be exercised in designing a product.
State courts are independent of federal courts.
Smartt Software Company borrows $10,000 from Term N All Loans, Inc., but cannot
repay the loan when it comes due. Term N All refuses to extend the time for repayment
unless Smartt can provide an acceptable surety. Uno Venture Corporation agrees to act
as a surety for the loan after Smartt offers the firm a discount on software and shows
Uno financial statements, compiled with Term N Alls assistance, that misrepresent
Smartts financial situation. Later, after Uno uses the discount to buy software, Smartt
again defaults on repayment of the loan, and Term N All files a suit against Uno to
collect the amount of the debt. Is Uno liable? Why or why not?
Kims home is valued at $250,000. Kim has paid the mortgageshe has 100 percent
equity in the property. She wants to start a new business with Lloyd. To obtain funds,
Kim refinances the loan through Metro Bank, borrowing $200,000 for fifteen years at
an interest rate of 85 percent. Before the loan is completed, Metro provides Kim with
all of the required disclosures. On the day of the loan, a fifteen-year Treasury bond is
yielding 2.85 percent. Kim pays $7,500 in fees to the bank. Less than a month later, she
sells her interest in the new business to Lloyd and wants to rescind the loan. Which
federal law covers this loanTILA, HOEPA, HPML, or HAMP? Can Kim rescind the
deal? Explain.
Most criminal liability depends on the performance of a prohibited act.
When a minor disaffirms a contract, he or she can keep whatever property is in his or
her possession as a result of the contract.
Don is an elderly man who lives with his nephew Evan. Don is dependent on Evan for
support. Evan advises Don to “invest in Evans “professional gambling venture, or Evan
will no longer support him. Don liquidates his other investments and signs a contract
with Evan, to whom Don gives the funds. Can Don set aside this contract?
In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County
Investment Corporation that the office furniture is included. The contract says nothing
about office furniture, but does state, “This document supercedes all oral promises
relating to the sale. Is the furniture part of the sale? Why or why not?
Employers and unions have a duty to bargain in good faith.
A plaintiff alleging wage discrimination must file a complaint within a certain period of
time of the decision that set the discriminatory pay.
An employer cannot check to see if a job applicant has any history of criminal conduct.
The liability of the members of a limited liability company is limited to the amount of
their investments.
A certificate of deposit represents a loan by its owner to a bank.
A product liability action based on negligence requires the injured plaintiff and the
negligent defendant-manufacturer to be in privity of contract.
There is one right answer to every legal question.
An accountant is not liable for a misleading statement that affects the price of a security
if the accountant acted in good faith.
Only employees contribute under federal law to help pay for benefits that will partially
make up for their loss of income on retirement.
A corporation is recognized as a “person.
A party seeking to recover compensatory damages cannot also recover incidental
damages.