Terrence has been Pauline's agent in the liquor business for 10 years and has made numerous contracts on Pauline's behalf. Under which of the following situations could Terrence continue to have the power to bind Panline?
a. Terrence lost his license to sell liquor in that state.
b. The firing of Terrence by Pauline.
c. The death of Pauline without Terrence's knowledge.
d. The bankruptcy of Pauline with Terrence's knowledge.
Which of the following is a reason to deny a debtor a discharge in bankruptcy?
a. Debtor owes debts arising from fraud.
b. Debtor owes his home state and the federal government tax payments from the past two years.
c. Debtor owes debts arising from willful and malicious injury to others.
d. Debtor received a discharge in bankruptcy five years ago.
Trinket Corporation is being sued by its distributor, International, for nonpayment of debts. International will be able to hold Jasper Crumb, a shareholder of Trinket, personally liable for the company's debts if:
a. Trinket's articles of incorporation allow for more than one class of stock.
b. Trinket Corporation is overcapitalized.
c. The shareholder's personal assets are materially commingled with Trinket's assets.
d. Trinket has four shareholders, including Jasper Crumb.
Chris is a member in an LLC in Philadelphia. Chris wishes to participate in the management of the LLC. His fellow members have told him he cannot participate in its management. Chris seeks your advice. You correctly tell him:
a. Members of an LLC are not entitled to participate in management.
b. By default, Chris may participate in management unless the LLC elected to be manager managed.
c. LLCS are not managed by members within the UC.
d. None of the above.
Barb e-mailed Steve, an electronics supplier, an offer to buy 300 flash drives imprinted with an attached logo at $2.00 per flash drive. The e-mail bore Barb's electronic signature. Steve immediately e-mailed back his acceptance. A week later, Barb telephoned Steve and truthfully explained that she made an error in her order it should have been for 200 flash drives. She asked if she could reduce her order to 200. Steve thought the imprinting process was not yet completed and so agreed to reduce the order to 200. After the phone call, Steve discovered that all 300 flash drives had already been imprinted. He delivered the 300, but Barb accepted only 200. Can Steve recover damages with respect to the 100 flash drives that were not accepted?
a. No, because Steve agreed to the mod fiction and his mistake was unilateral.
b. Yes, because Barb will be barred from introducing evidence of the modification.
c. No, because Steve is a merchant with respect to flash drives.
d. Yes, because Barb gave no consideration for the modification.
Bob telephoned Samantha, an electronics supplier, and offered to buy 600 small LED flashlights at $1.00 per flashlight. Bob planned to give the flashlights away at the grand opening of his electronics store. A week before the grand opening, Samantha received an offer for the immediate purchase of most of her small LED flashlight inventory for $1.25 per flashlight. She telephoned Bob, explained the situation, and told him she would be able to send him only 200 flashlights. Bob responded that a deal is a deal and he expected delivery of all 600 flashlights. Upset, Samantha sent Bob a signed letter again explaining that she could not deliver the 600 flashlights for $1.00 each as promised but would be happy to deliver 200. Bob did not respond. The day before the grand opening, Samantha delivered 200 flashlights. To meet his grand opening obligations, Bob gave away 400 medium-size flashlights which cost him $1.75 each. Is Bob entitled to recover damages for Samantha's failure to deliver all 600 flashlights?
a. No, because the offer and acceptance were oral and thus unenforceable under the Statute of Frauds.
b. Yes, because Samantha is a merchant with respect to flashlights.
c. Yes, because Samantha delivered only 200 flashlights.
d. No, because Bob did not respond to the letter.
1. b) The firing of Terrence by Pauline. When a principal terminates an agent's actual authority, the agent will continue to have apparent authority to perform until the principal notifies third parties who might have known of the agency.
2) d) debtor received a discharge in bankruptcy five years ago.
3) c) The shareholder's personal assets are materially commingled with Trinket's assets.
4) b) By default, Chris may participate in management unless the LLC elected to be manager managed.
5) a) No, because Steve agreed to the modification and his mistake was unilateral.
6) c) Yes, because Samantha delivered only 200 flashlights
Terrence has been Pauline's agent in the liquor business for 10 years and has made numerous contracts on Pauline's behalf