Under the “close-connection” doctrine, a holder has taken so many instruments from its
transferor or is so closely connected with the transferor that any knowledge the
transferor has is deemed transferred to the holder, preventing holder in due course
status.
A written stop payment order is effective for one year.
The term apparent authority is used when an appearance of authority has been created
by a principal, but actual authority does not exist.
If an employment contract provides that an employee can be fired only for “good cause”
or “just cause,” a lesser standard for discharge such as the employment-at-will doctrine
will not be allowed by a court.
The rights of an employee with respect to compensation are governed in general by the
same principles that apply to the compensation of an agent.
A seller’s insurable interest in goods always terminates with the passage of the title to
the buyer.
A reservation of rights is an assertion by a party to a contract that even though a
tendered performance is accepted, the right to damages for the nonconformity to the
contract is reserved.
A requirements contract is too vague to be a legally-enforceable agreement.
Copyright protection is not possible for materials located on the Internet.
As a general rule, a hotelkeeper has a lien on the property of boarders or lodgers.
If a seller sells an automobile to a buyer and then delivers the car with an outstanding
lien on it that was unknown to the buyer at the time of the sale, there is a breach of the
implied warranty of merchantability.
Under an indemnity contract, one person pays another consideration in return for a
promise to pay a specified sum of money in the event that a specified loss is suffered.
Shares can exist for only as long as the shareholder is alive.
If no time is stated for the duration of an offer, it continues indefinitely if the offer
relates to durable goods or land.
Companies whose securities are listed on a national securities exchange and unlisted
companies with assets in excess of $10 million and 500 or more shareholders are
exempt from the reporting requirements of the Securities Exchange Act of 1934.
Kentucky Lumber and MillWork Company contracted to supply Rommell Company
millwork for use in the construction of a school building. While the work was in
progress, the Kentucky mill was destroyed by fire. For two months thereafter, Kentucky
Lumber and MillWork Company supplied Rommell with mill work purchased by it
from a third party. The Kentucky mill did not wish to continue this plan and declared
that the contract was ended. Rommell brought an action against Kentucky Company to
enforce the contract. How will the court decide?
Sara and Sally rely on the statements of Alice, an accountant. In a lawsuit brought by
Sara and Sally against Alice for fraud, Alice seeks to avoid liability based on the fact
that neither Sara nor Sally was in privity of contract with Alice. Alice knew Sara might
rely on the financial information provided, but Alice did not know of Sally or anyone in
her position. Can Sara and Sally recover against Alice?
There is no exact standard or test by which to determine whether contractual
performance is substantial.