Questions from Business Law

Q: Stroud and Freeman are general partners in Stroud’s Food Center, a

Stroud and Freeman are general partners in Stroud’s Food Center, a grocery store. Nothing in the articles of partnership restricts the power or authority of either partner to act in respect to the ord...

Q: On April 5, Handy contracted to purchase land with the intent

On April 5, Handy contracted to purchase land with the intent of forming a limited liability company (LLC) with Ginsburg and McKinley for the purpose of building a residential community on the propert...

Q: In May, Parr and Presba, while in the course of

In May, Parr and Presba, while in the course of negotiations with Barker (a salesperson for Quaker Hill) to purchase plants and flowers, undertook to organize a corporation to be named the Denver Memo...

Q: A closely held corporation sought to repurchase 25 percent of its outstanding

A closely held corporation sought to repurchase 25 percent of its outstanding shares from one of its shareholders. The corporation and the shareholder agreed that the corporation would purchase all of...

Q: Sinclair Oil Corporation organized a subsidiary, Sinclair Venezuelan Oil Company (

Sinclair Oil Corporation organized a subsidiary, Sinclair Venezuelan Oil Company (Sinven) for the purpose of operating in Venezuela. Sinclair owned about 97 percent of Sinven’s stock. Sinclair nominat...

Q: Wilcox, chief executive officer and chairman of the board of directors

Wilcox, chief executive officer and chairman of the board of directors, owned 60 percent of the shares of Sterling Corporation. When the market price of Sterling’s shares was $22 per share, Wilcox sol...

Q: The plaintiff’s children purchased an Aero Cycle exercise bike for their mother

The plaintiff’s children purchased an Aero Cycle exercise bike for their mother to use in a weight loss program. The Aero Cycle bike was manufactured by DP and purchased from Walmart. The second time...

Q: Basic, Inc. was a publicly traded company. Combustion Engineering

Basic, Inc. was a publicly traded company. Combustion Engineering, Inc. and Basic began discussions concerning the possibility of a merger of the two companies. During the next two years, Basic made t...

Q: Southwire Company and Essex Group, Inc. are direct competitors in

Southwire Company and Essex Group, Inc. are direct competitors in the cable and wire industry. Southwire’s logistics system is a warehouse organizational system with components extending from architec...

Q: Mark Hunger was the safety director at Grand Central Sanitation. On

Mark Hunger was the safety director at Grand Central Sanitation. On September 7, Hunger “became aware” that hazardous materials consisting of blasting caps were being deposited into garbage containers...