Questions from Business Law

Q: Lee is an officer of Magma Oil, Inc. Lee knows

Lee is an officer of Magma Oil, Inc. Lee knows that a Magma geologist has just discovered a new deposit of oil. Can Lee take advantage of this information to buy and sell Magma stock? Why or why not?...

Q: Lyn writes a check for $900 to Mac, who indorses

Lyn writes a check for $900 to Mac, who indorses the check in blank and transfers it to Jan. She presents the check to Omega Bank, the drawee bank, for payment. Omega does not honor the check. Is Lyn...

Q: After graduating from college, Tina works briefly as a salesperson and

After graduating from college, Tina works briefly as a salesperson and then files for bankruptcy. As part of her petition, Tina reveals that her only debts are student loans, taxes accruing within the...

Q: Roni writes a check for $700 to Sela. Sela indorses

Roni writes a check for $700 to Sela. Sela indorses the check in blank and transfers it to Titus, who alters the check to read $7,000 and presents it to Union Bank, the drawee, for payment. The bank c...

Q: Dimka Corporation wants to build a new mall on a specific tract

Dimka Corporation wants to build a new mall on a specific tract of land. Dimka contracts with Nadine to act as its agent in buying the property. When Nadine learns of the difference between the price...

Q: Daniel and Katherine Balk asked Jirak Construction, LLC, to remodel

Daniel and Katherine Balk asked Jirak Construction, LLC, to remodel their farmhouse in Lawler, Iowa. Jirak provided the Balks with an initial estimate of $45,975 for the cost. Over the course of the w...

Q: Davis contracts with Estee to buy a certain horse on her behalf

Davis contracts with Estee to buy a certain horse on her behalf. Estee asks Davis not to reveal her identity. Davis makes a deal with Farmland Stables, the owner of the horse, and makes a down payment...

Q: Ogden is a vice president of Plumbing Service, Inc. (

Ogden is a vice president of Plumbing Service, Inc. (PSI). On May 1, Ogden loans PSI $10,000. On June 1, the firm repays the loan. On July 1, PSI files for bankruptcy. Quentin is appointed trustee. Ca...

Q: Erin, an employee of Fine Print Shop, is injured on

Erin, an employee of Fine Print Shop, is injured on the job. For Erin to obtain workers’ compensation, does her injury have to have been caused by Fine Print’s negligence? Does it matter whether the a...

Q: Onyx applies for work with Precision Design Company, which tells her

Onyx applies for work with Precision Design Company, which tells her that it requires union membership as a condition of employment. She applies for work with Quality Engineering, Inc., which does not...