Article II, Section 4 of the United States Constitution provides “The Congress shall
have Power…To promote the Progress of Science and useful Arts, by securing for
limited Times to Authors and Inventors the exclusive Right to their respective Writings
and Discoveries.”
The filing of a Chapter 13 petition does not automatically stay collection activities
against co-debtors and guarantors of consumer debts.
The Commerce Clause of the U.S. Constitution gives Congress the power to regulate
interstate commerce, as well as commerce with foreign nations and with Indian tribes.
In 2010, the United States Congress enacted the Dodd-Frank Wall Street Reform and
Consumer Protection Act to regulate hedge funds, derivatives, and abusive practices in
the securities industry.
The infancy doctrine gives minors the right to disaffirm most contracts they have
entered into with adults.
Competitors who agree that each will serve only a designated portion of the market are
engaging in market subordination.
A joint venture may be formed as a partnership, or as a corporation.
A licensee is a party who allows another party to use a trademark.
Interpretive rules issued by an administrative agency are intended to create new law.
Because of the possibility of bias, a government judgment against a party in an antitrust
action cannot be used as evidence against that party by a private party in a civil action.
If either party requests a jury, the trial will be by jury.
A corporation can be incorporated in only one state.
The Smith Act specifically regulates all tender offers, whether they are made with
securities, cash, or other consideration, and it establishes certain disclosure
requirements and antifraud provisions.
Even if management is not in favor of the resolution, so long as the shareholder has a
right to raise a shareholder’s resolution, management must include the shareholder’s
resolution in the corporation’s proxy materials.
An ambiguity in a contract cannot constitute a mutual mistake of a material fact.
Under the Securities Act of 1933, securities that have been issued under the “intrastate
offering” exemption cannot be resold to a nonresident of the state for two years
following the initial sale.
Duress requires an unwanted touching or physical threat forcing a party into a contract.
Under the Supremacy Clause of the United States Constitution, a judgment of a court of
one state must be recognized by the courts of another state.
Banks must credit all customers’ deposits to their accounts on the same day that the
deposits are received.
The debtor-in-possession is empowered to operate the debtor’s business during the
Chapter 11 bankruptcy proceeding.
An act by a corporation that is beyond its express or implied powers is called a sua
sponte act.
Assuming that all of the elements to establish a contract are present, an e-mail contract
is enforceable.
Scienter is a necessary element that must be proven for both innocent and fraudulent
misrepresentation.
State law limitations on garnishment control are often less stringent than federal law.
Laws that discourage drug and alcohol abuse are examples of the ‘shaping moral
standards” function of the law.
If the same wrongdoer engages in a series of forgeries or alterations on the same
account, the customer must report that to the payer bank within a reasonable period of
time, not exceeding one (1) year from the date that the bank statement was made
available to the customer.
The objective theory of contracts holds that the intent to enter into an express or
implied-in-fact contract is judged by the subjective person standard.
In order to be legal, a “bona fide occupational qualification” must be both job-related
and a business necessity.
Title VII of the Civil Rights Act of 1964 was intended to eliminate job discrimination
based on the following protected classes: race, color, national origin, sex, and disability.
A contract may be exempt from the Statute of Frauds requirement if it deals with
specially manufactured goods.
A corporation can hold title to and transfer property.
Common garnishees include banks in possession of funds belonging to a debtor.
State minimum wage amounts must be set at the same rate as the federal minimum
wage rate.
In general, when one party who is not a professional makes a misrepresentation about
the law to the other party to a contract, the deceived party can avoid the contract on the
basis of the misrepresentation.
The cumulative method of voting means that each shareholder is entitled to multiply the
number of shares he or she owns by the number of directors to be elected and cast the
product for a single candidate or distribute the product among two (2.) or more
candidates.
The Uniform Computer Information Transactions Act was passed by the U.S. Congress
in 1999.
If a liquidated damages clause is found to be a penalty, the non-breaching party may
then recover actual damages.