Business Law Flashcards
Defenses of Surety
C - creditor bad faith
P - paid or tender of performance
R - release of principle by debtor
S - surety is incapacitated or bankrupt
3 Elements of a Legally Enforceable Contract
1 - offer and acceptance
2 - exchange of considerations
3 - lack of defenses
5 Elements of Fraud (MAIDS)
M - misrepresentation of material facts
A - actual and reasonable reliance
I - induce reliance
D - damages / suffered a loss
S - scienter / intent to tort / intent to deceive
Statue of Fraud 6 Contracts Requiring a Writing (MYLEGS)
M - marriage
Y - contracts lasting longer than 1 year
L - land involvements
E - executors
G - exchange of goods ($500+)
S - acting as surety
Means Test
(avg monthly income - allowed expenses) x 60
Chapter 7 Bankruptcy Allowable Expenses
(allowable living expenses)
Costs of food
Shelter
Health Insurance
Health Savings Plan
Care Costs
Chapter 7
Trustee appointed
If debtor is artificial entity, it’s dissolved
Chapter 13
Adjustment of debts of individuals with regular income
trustee appointed
debtor repays over 3-5 years
Chapter 11
No liquidation, truste not required
trustee NOT appointed
debtor retains possession and plans reorganization
creditors paid to the extent possible
Chapter 15
ancillary and cross-border cases
Distrubution of debtors estate
payment and priorities
Support obligations to spouse and children
Admin expenses
Involuntary case gap claims
Wage claims up to $12,850
Employee benefit plans up to $12,850
Grain farmers and fisherman up to $6,325
Consumer deposits up to $2,850
Tax claims
Personal injury claims arising from intoxicated driving
Principal requirements
Capacity
Consent
PMSI creditors exist if…
creditor sells collateral on credit, retaining a security interest
credit advances funds used by debtor to purchase collateral
3 requirements for Attachment
Agreement
Value
Rights
5 types of Perfection
Filing
Taking possession
Control
Automatic perfection
Temporary perfection
Priority in collateral interest
Buyer
Holder of perfected PMSI
Holder of perfected securty interest
Holder of un-perfected security interest
Debtor
Agents owe Principal a duty of…
Loyalty
Obedience
Reasonable care
Account
Subagent
Principal Remedies
Tort and Contract damages
Secret profit recovery
Withhold compensation
Duties of Principal to Agent
Compensation
Reimbursement / Indemnification
Remedies of Agent
Exoneration
Surety compels principal to pay
Subrogation
after payment, Surety assumes creditors rights
Reimbursement / Indemnification
Surety owed back money from Principal
Co-Surety Exoneration
Surety compels other co-sureties to pay their part to creditor
Co-Surety Contribution
Co-Surety reimbursement to surety that paid for their share
Chapter 9
Deals with municipalities
