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The law considers all new, single-owner businesses to be sole proprietorships unless the
owner affirmatively adopts some other form.
A right can be assigned even if the assignment will significantly alter the risks or duties
of the obligor.
The alter-ego theory can be applied to a corporation, but not a limited liability company.
States do not have trademark statutes.
An agent can represent two principals in the same transaction as long as neither of them
knows about it.
An assignees rights are subject to the defenses that the obligor has against the assignor.
Laws and government regulations affect almost all business activities.
Mandatory arbitration clauses in employment contracts are generally enforceable.
Scienterclearly exists if a party knows a fact is not as stated.
When a buyer has breached a sales contract, and the goods are in his or her possession,
the seller can sue to recover the purchase price, but not incidental damages.
A franchisee is generally legally independent of the franchisor.
If a great degree of skill is required, this may indicate that a person is an employee
hired for a specialized job and not an independent contractor.
Any federal, state, or local affirmative action program that uses racial or ethnic
classifications as the basis for making decisions is subject to strict scrutiny by the
courts.
A remedy is the relief provided to an innocent contracting party when the other party
breaches the contract.
Sweet Air Filtration Products Company, a major supplier of air filters sold throughout
the United States, employs one hundred workers at its principal manufacturing plant.
The plant is located in Thunder Bay, which has a population that is 50 percent white
and 25 percent African American, with the balance Hispanic American, Asian
American, and others. Sweet Air requires a high school diploma as a condition of
employment for its cleaning crew. Three-fourths of the white population completed
high school, compared with only one-fourth of those in the minority groups. Sweet Air
has an all-white cleaning crew. Has Sweet Air violated the Civil Rights Act of 1964?
Explain.
Under the authority ofa long arm statute, a court can exercise personal jurisdiction over
certain out-of-state defendants.
In a transaction for the sale of an auto painting facility, Bright Auto Colors Company
tells Custom Cars Corporation that the paints and other supplies on-site are included.
The contract says nothing about the supplies on-site, but does state, "This document
supersedes all oral promises relating to the sale. Are the supplies part of the sale? Why
or why not?
