Insurance is classified according to the amount of the payment on a claim.
Professionals are obligated to adhere to standards of performance generally accepted
within their profession.
Specific performance is the remedy customarily used when one party has breached a
contract for a sale of land.
Only private attorneys prosecute criminal defendants.
A purchase-money security interest in consumer goods is perfected automatically at the
time of a credit sale.
An employer can be liable for an employees sexual harassment of a member of the
same gender.
Loan flipping occurs when a lender convinces a homeowner to refinance soon after
obtaining a mortgage.
A security interest that provides for a security interest in proceeds is a floating lien.
A suspect cannot be tried twice in the same court for the same crime.
A security interest is enforceable only if the collateral is in the secured partys
possession.
Interrogatories are written questions for which written answers are prepared and signed
under oath.
An action may be legal and ethical.
Current City (CC) is a retail seller of television sets. CC sells Dhani a $5,000
large-screen, high-definition, plasma set on a retail installment security agreement in
which he pays $100 down and agrees to pay the balance in equal installments. CC
retains a security interest in the set, and perfects that interest by filing a financing
statement centrally. Two months later, Dhani is in default on the payments to CC and is
involuntarily petitioned into bankruptcy by other creditors. Discuss CCs right to
repossess the TV set and whether CC has priority over the trustee in bankruptcy to any
proceeds from the disposal of the set.
Tiny authorizes United Bank to make transfers from his account to make payments on
his debt to Vics Auto Dealership, which sold Tiny the car that serves as collateral for the
debt. After three payments, Vics repossesses the car and refuses to return it. Tiny
phones the bank to stop the payments and follows up with a confirming letter. The bank
fails to stop the next two payments, and Vics refuses to refund anything. Can Tiny get
his money from the bank? Explain.
The price that a secured party obtains on a sale of collateral is all that the creditor can
recover on the debt.
A check, like other negotiable instruments, is a formal contract.
Multi Investments, Inc., offers to buy Nano Toy Corporation. On May 1, Nano provides
copies of its financial statements for the previous year, showing an inventory of $10
million. On May 15, Nano discovers that the previous years inventory is overstated by
$5 million, but does not inform Multi. On June 1, Multi, relying on the financial
statements, buys Nano. On June 10, the buyer discovers the inventory overstatement.
Can Multi succeed in a suit against Nano for fraud?
Federal statutes apply to all states.
Dissolution can be brought about voluntarily by the directors and shareholders of a
corporation.
Quotas are limits on the amounts of goods that can be imported.