Under the United States Supreme Court’s definition, an investment contract exists if the
following elements are present: (1) an investment of money, (2) a common enterprise,
and (3) an expectation of future profits from the efforts of others.
Peter applied for a loan at three banks. Peter’s application was denied at the first two
banks but finally was approved by the third institution. Peter believes that the first two
banks denied his application because of his minority status. No explanation ever was
provided by the banks denying Peter’s request for funds. After obtaining the loan, Peter
soon found himself unable to make the prescribed payments. Peter went into default,
causing the bank to turn his case over to a collection agency. The collection agency
called him “night and day” and were very abusive in their collection practices. Peter
became quite distraught and unable to function at his job. As a result, Peter was soon
fired. Peter asks for your advice regarding his legal rights. What is your response?
Statutes often require that the attestation of witnesses be made in the presence of the
testator and in the presence of each other.
A promise that in fact does not impose any obligation on the promisor is known as an
elusive promise.
Quasi contracts are contracts.
In a limited partnership, general partners are not responsible for the debts of the firm.
Alfred, an enterprising college senior, had been involved in the selling of goods for a
number of years at flea markets. Alfred supported himself in this way but yearned for
greater success. He was particularly interested in selling men’s clothing. He studied the
clothing lines of famous designers Giorgio Armani and Bill Blass. Alfred then contacted
a clothing manufacturer who agreed to copy the styles under the names of Armani and
Blass. Alfred began to sell the copied clothing articles under the names “Gorgo Ormani”
and “Bill Bless.” The names, however, were not clearly printed on the labels but written
in a handwritten scrawl making it difficult to discern the actual spelling. The matter has
been brought to the attention of the FTC. Discuss possible violations of the FTC Act.
The delivery of a check is regarded as an assignment of money on deposit, and the
drawee bank is required to pay the holder the amount of the check.
A person who obtains life insurance generally can name anyone as beneficiary,
regardless of whether that beneficiary has an insurable interest in the life of the insured.
Administrative agencies must be rigidly controlled and cannot be granted discretionary
authority.
A person who has drunk too much alcohol at a party and signs a contract may be able to
rescind that contract.
For the parties to enter into an accord and satisfaction that discharges the original
obligation, there must be a bona fide dispute.
The Digital Millennium Copyright Act makes it a federal offense to circumvent, or
create programs to circumvent, encryption devices placed in copyrighted material to
prevent unauthorized copying.
A trustee may keep all matters associated with the trust secret.
An agreement is illegal when either its formation or performance is a crime or a tort, or
it is contrary to public policy.
Tucker and Hankey were adjoining property owners. Tucker claimed that the fence
separating their properties was not located properly and that it should be moved back
onto Hankey’s land. Hankey claimed that he owned the strip between the fence and the
alleged boundary line by adverse possession. He proved that for forty (40) years there
had been on the strip in question a barn with a cement floor, which had been built by the
person from whom he purchased his land, and that he had been told by the former
owner that the fence was the boundary line. The fence consisted of five-foot-high
barbed wire set in cement. Did Hankey own the strip by adverse possession?
A blank endorsement indicates the person to whom the instrument is to be paid-that is,
the transferee.
Bud is unable to obtain a loan without some form of additional reassurances. Bud
comes to you for assistance. You are willing to help Bud, but you wish to protect
yourself from liability as much as possible. Would you prefer a surety or a guaranty?
The bank issuing the loan also wishes to protect itself as much as possible. Would the
bank prefer a surety or guaranty? If your oral assurances are enough to solidify the loan,
has a surety or guaranty been formed?
Administrative regulations generally do not have the force of a statute.
The rights of partners are determined by the partnership agreement.