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Call Center Corporation, a U.S. firm, owns property in India. The Government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is
Coast-to-Coast Distribution, Inc., is a direct-mail distribution company. Like most corporations, Coast-to-Coast’s employees include its
Tab stores video equipment with U-Store-It, Inc., under a contract that excuses the warehouse from liability for any damage. A fire due to U-Store-It’s negligence destroys the equipment. The loss is most likely to be imposed on
Fancee Furniture Store sells household consumer goods. To create a purchase-money security interest, Fancee must
Riley, an engineer for Shur-2-Gro Seed Corporation, learns that the company has developed a corn hybrid to triple the output of any farm. Riley buys 20,000 shares of Shu-2-Gro stock. He tells Tess, who buys 15,000 shares. After the new hybrid is announced publicly, the price of Shur-2-Gro stock increases. Riley and Tess sell their shares for a profit. Under the law regarding insider trading (Securities Exchange Act of 1934), liability may be imposed on
Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking certain parts, Quality ships the game to Regal Repair Company. While in Regal’s possession, the game is damaged. Quality can recover for the damage from
Esme hires Franz to do some remodeling work in her office. The relationship between Esme and Franz is client and independent contractor. While working, Franz drops a tool on Gregor, Esme’s customer, causing an injury. Esme is
Julie signs a check payable to the order of Kwik-Mart Stores, Inc., that does not include a date. This check is
Bryan organized, and owns and operates, Bryan’s Heating and Air Conditioning Service in the simplest form of business organization. This is
Jill introduces Kelly to her friends as “my associate.” Kelly purports to act as Jill’s agent in several business transactions with those friends. If Jill is liable for Kelly’s actions, it will be under
Hal’s Hardware Store defaults on a debt to Intrastate Bank, which takes possession of the collateral securing the debt. Intrastate sells the collateral. The proceeds from the sale are applied first to
Rikki writes a check “pay to the order of Scholar University” drawn on Rikki’s account in Town Bank to pay her tuition. Rikki is
Pruit performs a contract with Quint to reshingle the roof on Quint’s house, but Quint does not pay. Pruit notifies Quint that Pruit will foreclose on the house and sell it to satisfy the debt. This is
John executes a will in his own handwriting, and signs it. He then takes the document to three different people, including a notary, pointing to his signature and stating that it is his. The witnesses and the notary attest to witnessing John’s signature. This document
Sam works for Acme Consultants, Inc. He has no written contract of employment with Acme, but the employee manual given to him when he begins his employment states an encouragement to employees that as part of their ethical responsibilities, employees are to report illegal or unethical activity of anyone in the firm. Sam witnesses illegal activity going on at work by other employees of the firm. He reports the illegal activity to the proper law enforcement authorities. Sam is then dismissed from his employment, apparently as a response to Sam’s reporting the illegal activity. All of the following statements about this situation are true, EXCEPT:
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1 million from Helpful Finance Corporation for a security interest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the equipment. GLC defaults on the loans. Suppose that Helpful perfects its security interest when GLC takes possession of the equipment. In that circumstance, the party with priority to the collateral on GLC’s default would be
Clearwater Irrigation Systems, Inc. employs Daphne as an agent. During the agency, Daphne acquires new skills. After termination of the relationship, Daphne uses those skills in a new job. Daphne has breached
The term LLP refers to
1. Which of the following statements about international law is/are true, according to what we have studies in this course?
I. The WTO (World Trade Organization) creates a free trade zone around the world.
II. The WTO is to international commerce what the Unites Nations is to international politics.
Kelly signs an instrument in favor of Len that states it is “subject to a certain agreement between Kelly and Mona.” This instrument is
Donald applies for a life insurance policy on his own life with Equity Insurance Company. The application for insurance is considered to be
Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita’s brother Elvin owns everything else on the farm – implements, seed, and so on. The real property is owned by
Thalia is an employee of Universal Insurance Company. Universal’s employee manual states that workers will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933, are “exempt.” This means that the securities can be sold
Kit, manager of Long-Term Care Company’s office in Metro City, decides to replace the office’s male employees with females. Nia, an assistant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit. Liability for Kit’s conduct most likely rests with
Kit, manager of Long-Term Care Company’s office in Metro City, decides to replace the office’s male employees with females. Nia, an assistant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit.
Kit’s conduct is most likely a violation of
Jesse rents an apartment from Slumlords, Inc. Two months into a one-year lease, Jesse discovers a hole in the ceiling of his premises is causing a leak from the bathroom of the apartment above into his unit. Jesse notifies the landlord of the hole, which is growing larger by the day and is making use of Jesse’s own bathroom impossible. A month goes by and the landlord has not responded to Jesse’s complaint or made repairs. Jesse’s options at this point are all of the following EXCEPT:
Rita is a surety for Stu’s loan from Total Finance Company. Rita’s right to “step into the shoes” of Total Finance, after paying Stu’s debt, and exercise any of Total Finance’s rights against Stu is the right of
Joey, in good faith and for value, gets from Kit a negotiable bearer instrument. Joey does not know that Kit stole the instrument. Joey is
Sedate Investment Corporation (SIC) hires Tiger, a real estate agent, to locate investment properties for SIC. Tiger learns of a warehouse available for $100,000, buys it himself, and offers to sell it to SIC for $110,000. Tiger
To acquire the ownership of a mountain cabin by adverse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time
Clyde issues a check payable to Discount Mart. Elle, Discount’s cashier, forges the store’s endorsement and deposits the check in her bank account. Clyde’s bank, Fab Bank, pays the check. Clyde can recover from
Which of the following statements about wills is/are true?
I. A will controls the disposition of all property that is considered part of the testator’s probate estate.
II. Dying without a will means that the state will dictate the disposition of property according to its intestacy laws.
Donald completes and signs an application for life insurance, he gives the insurance agent for Equity a check as a deposit on the first year’s premium, upon which Equity’s agent gives Donald a “conditional receipt” for the premium deposit, binding the application. Donald gets hit by a bus upon leaving the agent’s office that same day, and unfortunately, dies, before Equity completes its medical underwriting of Donald’s application. Donald’s beneficiary files a claim for the policy proceeds. The most likely outcome is
Caine takes a check out of Able’s checkbook, fills in payment of $1000 to himself, and forges Able’s signature to the check. Able discovers the missing check, and informs his bank of this fact. The bank wants to issue a stop payment order on the check and charge Able’s account $30 for the stop payment order. Able refuses the charge. When Caine shows up at Able’s bank to cash the check, the Bank has all of the following options, EXCEPT:
Rusty and Sylvia are shareholders of Triad Hotel Corporation. Triad’s directors fail to declare a dividend. Rusty and Sylvia could succeed in asking a court to order the directors to meet and declare a dividend
Superior Home Products, Inc. is a corporation. Superior’s implied powers enable it to
Suppose that two weeks after GLC takes possession of the equipment, Helpful and Interstate file financing statements, with Interstate filing first. In that circumstance, the party with priority to the equipment is
Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court’s decree. This is