Questions from Business Law

Q: Smith’s Food & Drug Centers, Inc. (SFD) is

Smith’s Food & Drug Centers, Inc. (SFD) is a Delaware corporation that owns and operates a chain of supermarkets in the Southwestern United States. Jeffrey P. Smith, SFD’s chief executive officer, and...

Q: XYZ Corporation was duly organized on July 10. Its certificate of

XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for a total authorized capital of $1 million, consisting of ten thousand shares of common stock with a par valu...

Q: Doris subscribed for 200 shares of 12 percent cumulative, participating,

Doris subscribed for 200 shares of 12 percent cumulative, participating, redeemable, convertible, preferred shares of the Ritz Hotel Company with a par value of $100 per share. The subscription agreem...

Q: Hyperion Company has an authorized capital stock of 1,000 shares

Hyperion Company has an authorized capital stock of 1,000 shares with a par value of $100 per share, of which 900 shares, all fully paid, were outstanding. Having an ample surplus, Hyperion Company pu...

Q: For five years, Henry and James had been engaged as partners

For five years, Henry and James had been engaged as partners in building houses. They owned the equipment necessary to conduct the business and had an excellent reputation. In March, Joyce, who previo...

Q: Paul Bunyan is the owner of noncumulative 8 percent preferred stock in

Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2013. In 2014, the corporation had large profits and a surplus fro...

Q: Alpha Corporation has outstanding 400 shares of $100 par value common

Alpha Corporation has outstanding 400 shares of $100 par value common stock, which has been issued and sold at $105 per share for a total of $42,000. Alpha is incorporated in State X, which has adopte...

Q: Almega Corporation, organized under the laws of State S, has

Almega Corporation, organized under the laws of State S, has outstanding 20,000 shares of $100 par value nonvoting preferred stock calling for noncumulative dividends of $5 per year; 10,000 shares of...

Q: Sayre learned that Adams, Boone, and Chase were planning to

Sayre learned that Adams, Boone, and Chase were planning to form a corporation for the purpose of manufacturing and marketing a line of novelties to wholesale outlets. Sayre had patented a self-lockin...

Q: Brown, the president and director of a corporation engaged in owning

Brown, the president and director of a corporation engaged in owning and operating a chain of motels, was advised, on what seemed to be good authority, that a superhighway was to be constructed throug...