Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition
television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be
made on delivery. Signal tenders delivery in its own truck. Tuners manager notices that
some of the cartons have scrape marks. Tuners owner phones Signals office and asks
whether the sets might have been damaged as they were being loaded. Signal assures
Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal
refuses, claiming that the first delivery to new customers is always for cash. Tuner
promises to pay the cash within two days. Signal leaves the sets with Tuner, which
stores them in its warehouse pending its “Grand Opening Sale” on May 15. Two days
later, Tuners stocker opens some of the cartons and discovers that a number of the sets
are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in
breach by not paying on delivery. Will Signal succeed on these claims? Explain.
The concept of a floating lien does not apply to a shifting stock of goods.
The completion of an originally incomplete instrument in an unauthorized manner is a
defense against payment on the instrument to an HDC.
Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under
a written lease with a twenty-year term, rent payable annually. The lease includes a
clause stating that Burgertown is responsible for making all necessary repairs, including
rebuilding the structure after its destruction by any cause beyond Andys control. The
lease does not include a clause concerning its assignment. One day after the tenth rental
payment, Burgertown, without Andys knowledge or consent, assigns its interest in the
lease to Chicken Hut Restaurants, Inc. Meanwhile, Andy dies and Dotty inherits Andys
interest in the building. Without the knowledge or consent of either Burgertown or
Chicken Hut, Dotty sells the building to Earnest Investments, Inc. The next month, the
building is destroyed in the flood of a nearby river. Burgertown rebuilds it and files a
suit against Earnest for the expense. Earnest responds that the lease has terminated. Is
Earnest correct? If so, when did the lease terminate? If not, is Earnest liable for the cost
of rebuilding the structure? Why or why not?
Employer who willfully violates safety regulations can be prosecuted under state laws.
A holding company is a company whose business activity consists of holding shares in
another company.
Under the principle of comity, a foreign business that deals with a U.S. business may be
subject to U.S. law.
A corporation whose security does not qualify for an exemption can avoid the cost and
complexity associated with registration.
A business takes a risk by electronically storing its customers credit account numbers.
A contract entered into under duress is voidable.
In raising capital, a sole proprietor is limited to his or her personal fundsa personal loan
is not possible.
“Consideration refers to the genuine assent of all of the parties to a contract.
Once an employee receives workers compensation, he or she can maintain a suit against
the employer for negligence.
In contracts involving a carrier, a seller can complete performance only through a
destination contract.
Common carriers are held to a standard of care based on strict liability in protecting
bailed property in their possession.
If a loan is not paid within a reasonable time after a notice of default, the borrower will
receive a notice of sale.