Marie owes Nathan $900 and the parties agree that Marie will paint Nathan’s house in
satisfaction of the debt. The debt is not discharged until Marie performs the substituted
agreement by painting Nathan’s house.
When reviewing factual determinations of an administrative agency, the courts must
always use the arbitrary and capricious test.
If a “liquidation preference” is provided, preferred stock usually has priority over
common stock to the extent the articles of incorporation state.
The constitutional protection extended to commercial speech is based on the
informational function of advertising.
As a result of regulations by the Securities and Exchange Commission and the stock
exchanges, the boards of directors of the great majority of publicly held corporations
consist primarily of outside directors, and these corporations have audit committees of
outside directors.
A negotiation can be effective to transfer an instrument even if made by a person
without capacity.