What is a suretyship and how does it differ from a guaranty?
> Springer, who was running for Congress, instructed his campaign staff not to purchase any campaign materials without his explicit authorization. In spite of these instructions, one of his campaign workers contracted with Dubychek Printing Co. to print so
> Monica Sexton filed a petition for Chapter 13 reorganization. One of her creditors was Friedman’s Jewelers. Her petition misclassified Friedman’s claim as $800 of unsecured debt. Within days, Friedman’s filed proof of a secured claim for $300 and an unse
> Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy Palace in March 2011. The three orally agreed to share the business for five years. Grace contributed 50 percent of the investment, and each son contributed 25 percent. Man
> Carlos Del Rey decided to open a fast-food Mexican restaurant and signed a franchise contract with a national chain called La Grande Enchilada. Under the franchise agreement, Del Rey purchased the building, and La Grande Enchilada supplied the equipment.
> Amaani Lyle, an African American woman, took a job as a scriptwriters’ assistant at Warner Brothers Television Productions. She worked for the writers of Friends, a popular, adult-oriented television series. One of her essential job duties was to type de
> Rick Saldona began working as a traveling salesperson for Aimer Winery in 1994. Sales constituted 90 percent of Saldona’s work time. Saldona worked an average of fifty hours per week but received no overtime pay. In June 2017, Saldona’s new supervisor, C
> Lynne Meyer, on her way to a business meeting and in a hurry, stopped by a Buy-Mart store for a new car charger for her smartphone. There was a long line at one of the checkout counters, but a cashier, Valerie Watts, opened another counter and began load
> Three months ago, Janet Hart’s husband of twenty years died of cancer. Although he had medical insurance, he left Janet with outstanding medical bills of more than $50,000. Janet has worked at the local library for the past ten years, earning $1,500 per
> Paul Barton owned a small property-management company, doing business as Brighton Homes. In October, Barton went on a spending spree. First, he bought a Bose surround-sound system for his home from KDM Electronics. The next day, he purchased a Wilderness
> RPM Pizza, Inc., issued a check for $96,000 to Systems Marketing for an advertising campaign. A few days later, RPM decided not to go through with the deal and placed a written stop-payment order on the check. RPM and Systems had no further contact for m
> James Thomas and Jennifer Clark married and had two children. They bought a home in Ironton, Ohio, with a loan secured by a mortgage. Later, they took out a second mortgage. On their divorce, the court gave Clark custody of the children and required Clar
> Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks, Inc., a natural gas dis
> William Sharp was the sole shareholder and manager of Chickasaw Club, Inc., an S corporation that operated a popular nightclub of the same name in Columbus, Georgia. Sharp maintained a corporate checking account but paid the club’s employees, suppliers,
> The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city posted notices seeking proposals for an artistic bridge design and reconstruction. Davidson Masonry, LLC—owned and managed by Carl Davidson
> What duties do agents and principals owe to each other?
> What are the four most common types of electronic fund transfers?
> How does a mechanic’s lien assist creditors?
> If two parties have perfected security interests in the collateral of the debtor, which party has priority to the collateral on the debtor’s default?
> How do agency relationships arise?
> What is the difference between an employee and an independent contractor?
> What type of check does a bank agree in advance to accept when the check is presented for payment?
> Michael and Dianne Shankle divorced. An Arkansas state court ordered Michael to pay Dianne alimony and child support, as well as half of the $184,000 in their investment accounts. Instead, Michael withdrew more than half of the investment funds and spent
> What certification requirements does the Sarbanes-Oxley Act impose on corporate executives?
> What are the two major statutes regulating the securities industry?
> What is meant by the term securities?
> What is a voting proxy?
> What are the duties of corporate directors and officers?
> What four steps are involved in bringing a corporation into existence?
> What is a close corporation?
> What advantages do limited liability companies offer to businesspersons that are not offered by sole proprietorships or partnerships?
> What are the key differences between the rights and liabilities of general partners and those of limited partners?
> What is meant by joint and several liability? Why is this often considered to be a disadvantage of the partnership form of business?
> Like many students, Barbara Hann financed her education partially through loans. These loans included three federally insured Stafford Loans of $7,500 each ($22,500 in total). Hann believed that she had repaid the loans, but later, when she filed a Chapt
> Gary goes grocery shopping and carelessly leaves his checkbook in his shopping cart. His checkbook, with two blank checks remaining, is stolen by Dolores. On May 5, Dolores forges Gary’s name on a check for $100 and cashes the check at Gary’s bank, Citiz
> What are the three essential elements of a partnership?
> What are the most common types of franchises?
> What are three defenses to claims of employment discrimination?
> What federal act prohibits discrimination based on age?
> What is required to establish a prima facie case of disparate-treatment discrimination?
> What federal statute gave employees the right to organize unions and engage in collective bargaining?
> What are the two most important federal statutes governing immigration and employment today?
> What federal statute governs working hours and wages?
> How does a Chapter 13 bankruptcy differ from bankruptcy under Chapter 7 and Chapter 11?
> In a Chapter 11 reorganization, what is the role of the debtor in possession?
> Michelle Gholston leased a Chevy Impala from EZ Auto Van Rentals. In November 2011, Gholston filed for bankruptcy. Around November 21, the bankruptcy court notified EZ Auto of Gholston’s bankruptcy and the imposition of an automatic stay. Nevertheless, b
> What constitutes a preference in bankruptcy law? When is a trustee able to avoid preferential transfers?
> In a Chapter 7 bankruptcy, what happens if a court finds that there was “substantial abuse”? How is the means test used?
> What are three ways for a debtor to avoid mortgage foreclosure?
> How is a purchase-money security interest in consumer goods created and perfected?
> What is electronic check presentment, and how does it differ from the traditional check-clearing process?
> What duties does the Uniform Commercial Code impose on a bank’s customers with regard to forged and altered checks? What are the consequences if a customer is negligent in performing those duties?
> When may a bank properly dishonor a customer’s check without being liable to the customer?
> What is required to create a security interest?
> What are some of the features of state securities laws?
> Bill and Betty Ma owned half of a two-unit residential building. Betty lived in the unit, but Bill did not. To collect a judgment against the Mas, Mei-Fang Zhang obtained a writ of execution directing the sheriff to seize and sell the building. State law
> What is insider trading? Why is it prohibited?
> In what circumstances might a court disregard the corporate entity (“pierce the corporate veil”) and hold the shareholders personally liable?
> What are the essential characteristics of syndicates, joint stock companies, business trusts, and cooperatives?
> What is a joint venture? How is it similar to a partnership? How is it different?
> What are the two options for managing limited liability companies?
> How are limited liability companies formed, and who decides how they will be managed and operated?
> What advantages do limited liability partnerships offer to businesspersons that are not offered by general partnerships?
> What are the rights and duties of partners in an ordinary partnership?
> How are franchises normally terminated? When will a court decide that a franchisor has wrongfully terminated a franchise?
> What are the basic requirements of the Franchise Rule?
> Montoro petitioned himself into voluntary bankruptcy. There were three major claims against his estate. One was made by Carlton, a friend who held Montoro’s negotiable promissory note for $2,500. Another was made by Elmer, Montoro’s employee, who claimed
> What advantages and disadvantages are associated with the sole proprietorship?
> What is a constructive discharge? To which employment discrimination claims does the theory of constructive discharge apply?
> What must an employer do to avoid liability for religious discrimination?
> Under the Family and Medical Leave Act, in what circumstances may an employee take family or medical leave?
> What is the employment-at-will doctrine?
> What are some of the ways in which an agency relationship can be terminated?
> When is a principal liable for the agent’s actions with respect to third parties? When is the agent liable?
> Jorge contracts with Midwest Roofing to fix his roof. Jorge pays half of the contract price in advance. Midwest completes the job, but Jorge refuses to pay the rest of the price. What can Midwest do?
> Liberty Bank loans Michelle $5,000 to buy a car, which is used as collateral to secure the loan. After repaying less than 50 percent of the loan, Michelle defaults. Liberty could repossess and keep the car, but the bank does not want it. What are the alt
> When a corporation wishes to issue certain securities, it must provide sufficient information for an unsophisticated investor to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that i
> Burke has been a rancher all her life, raising cattle and crops. Her ranch is valued at $500,000, almost all of which is exempt under state law. Burke has eight creditors and a total indebtedness of $70,000. Two of her largest creditors are Oman ($30,000
> Name Brand, Inc., is a small business. Twelve members of a single family own all of its stock. Ordinarily, corporate income is taxed at the corporate and shareholder levels. How can Name Brand avoid this double taxation of income?
> Greener Delivery Company and Hiway Trucking, Inc., form a business trust. Insta Equipment Company and Jiffy Supply Corporation form a joint stock company. Kwik Mart, Inc., and Luscious Produce, Inc., form an incorporated cooperative. What do these forms
> Gabriel, Harry, and Ida are members of Jeweled Watches, LLC. What are their options with respect to the management of their firm?
> Darnell and Eliana are partners in D&E Designs, an architectural firm. When Darnell dies, his widow claims that as Darnell’s heir, she is entitled to take his place as Eliana’s partner or to receive a share of the firm’s assets. Is she right? Why or why
> Koko, a person with a disability, applies for a job at Lively Sales Corporation for which she is well qualified, but she is rejected. Lively continues to seek applicants and eventually fills the position with a person who does not have a disability. Coul
> Ruth is a supervisor for a Subs & Suds restaurant. Tim is a Subs & Suds employee. The owner announces that some employees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. Is this sexual harassment? Why or why not?
> 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 require union membership as a condition of employment
> 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 action causing the injury was intentional? Explain.
> 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. Can Quentin recover the $10,000 paid to Ogden on June 1?
> 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. Estee does not pay the rest of the price. Farmland S
> 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 work, the Balks made significant changes to the plan. J
> 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 that Dimka is willing to pay and the price at which th
> 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 cashes it. Roni discovers the alteration and sues the b
> 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 last year, and a claim against her based on her misus
> 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 liable to Jan? Could Lyn be subject to criminal prosec
> 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?
> 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 purchase and wants to sue the directors on Wonder’s behalf.
> Finian and Gloria are partners in F&G Delivery Service. When business is slow, without Gloria’s knowledge, Finian leases the delivery vehicles as moving vans. Because the delivery vehicles would otherwise be sitting idle in a parking lot, can Finian keep
> Thirsty Bottling Company and U.S. Beverages, Inc. (USB), enter into a franchise agreement that states that the franchise may be terminated at any time “for cause.” Thirsty fails to meet USB’s specified sales quota. Does this constitute “cause” for termin
> Frank plans to open a sporting goods store and to hire Gogi and Hap. Frank will invest only his own funds. He expects that he will not make a profit for at least eighteen months and will make only a small profit in the three years after that. He hopes to
> A financing statement that does not have the debtor’s exact name should still be effective because creditors should always be protected when debtors default. Debate this
> With a loan of 1.4 million euros from Barclays Bank, PLC, Thomas Poynter bought a yacht. The loan agreement gave Barclays multiple options on default. One option required the lender to give ten days’ advance notice of a sale. A different option permitted
> To reduce fraud, checks that utilize mechanical or electronic signature systems should not be honored.
