Questions from Business Law

Q: Hal and Gretchen are partners in a delivery business. When business

Hal and Gretchen are partners in a delivery business. When business is slow, with out Gretchen’s knowledge, Hal leases out the delivery vehicles as moving vans. Because the vehicles would otherwise be...

Q: Wonder Corporation has an opportunity to buy stock in XL, Inc

Wonder Corporation has an opportunity to buy stock in XL, Inc. The directors decide that, instead of Wonder buying the stock, the directors will buy it. Yvon, a Wonder shareholder, learns of the purch...

Q: The incorporators of Consumer Investments, Inc., want their new corporation

The incorporators of Consumer Investments, Inc., want their new corporation to have the authority to transact nearly all conceivable types of business. Can they grant this authority to their firm? If...

Q: Glen is a director and shareholder of Diamond Corporation and of Emerald

Glen is a director and shareholder of Diamond Corporation and of Emerald, Inc. If a resolution comes before the Emerald board to compete with Diamond, what is Glen’s responsibility?

Q: Joe is a director and officer of United Products, Inc.

Joe is a director and officer of United Products, Inc. Joe makes a decision about the marketing of United’s products that results in a dramatic decrease in profits for United and its shareholders. The...

Q: ABC Corporation combines with DEF, Inc. ABC ceases to exist

ABC Corporation combines with DEF, Inc. ABC ceases to exist. DEF is the surviving firm. Global Corporation and Hometown Company combine. Afterwards, Global and Hometown cease to exist. GH, Inc., a new...

Q: Interstate Corporation asks its shareholders to vote on a proposed merger with

Interstate Corporation asks its shareholders to vote on a proposed merger with Regional, Inc. Jill, an Interstate shareholder, votes against it, but is outvoted by the other shareholders. Is there any...

Q: Joe contracts with Larry of Midwest Roofing to fix Joe’s roof.

Joe contracts with Larry of Midwest Roofing to fix Joe’s roof. Joe pays half of the contract price in advance. Larry and Midwest complete the job, but Joe refuses to pay the rest of the price. What ca...

Q: First National Bank loans $5,000 to Gail to buy

First National Bank loans $5,000 to Gail to buy a car, which is used as collateral to secure the loan. Gail has paid less than 50 percent of the loan when she defaults. First National could repossess...

Q: Ruth Ann borrows $175,000 from Sunny Valley Bank to

Ruth Ann borrows $175,000 from Sunny Valley Bank to buy a home. Federal law regulates primarily the terms of the mortgage that must be disclosed in writing in clear, readily understandable language. W...