mile 22

Question 1

if a principal fires an agent, why must an actual notice and constructive notice be released?

Answer 1

without the notices, the agent still has apparent authority and the principal will still be liable for unauthorized acts the agent makes even after being fired

Question 2

what kind of power does an agent have when they pay for the right to be appointed as an agent?

Answer 2

the right to terminate the agency

Question 3

why can’t a principal ratify an unauthorized act made by an agent who did not disclose the principal?

Answer 3

ratification of a contract requires that the 3rd party is aware that the agent is acting on behalf of the principal.

(the principal must also be aware of all material facts in the contract)

Question 4

no notice needs to be given when terminating an agency when:

Answer 4

the principal or agent dies
the principal or agent is insane
the principal is bankrupt
operating license is gone
subject matter is destroyed

Question 5

when does the statute of limitations begin?

Answer 5

when the breach of contract occurs

Question 6

what is an implied warranty and its 2 types?

Answer 6

title passes
merchantability + fitness for a particular purpose

Question 7

if a seller ships nonconforming goods, what does it mean for the seller to cure and ship conforming goods?

Answer 7

the seller has a right to correct defects in the shipment as long as:
- still within performance window
- buyer is given notice

Question 8

what is the difference between fraud in execution vs fraud in inducement?

Answer 8

fraud in execution: when the victim does not know that a contract is being made (before)

fraud in inducement: when the victim finds fraud after the entering into a contract (after)

Question 9

what is the order of distribution for secured and unsecured claims? (SAG WEG CTI)

Answer 9

support for alimony and child
admin costs
gap creditors

wages for employees
employee benefits
grain farmers’ claim

consumer deposits
taxes
injury personally from intoxicated drivers

Question 10

how long must a debtor wait before filing another BK discharge?

Answer 10

8 years

Question 11

what are a surety’s right:
- prior to payment
- after payment

Answer 11

exoneration

subrogation
contribution

Question 12

what’s the difference between subrogation and contribution?

Answer 12

the surety wants reimbursement from the debtor
the surety wants reimbursement from other sureties

Question 13

what are the 3 elements of a security interest attachment?

Answer 13

1. the debtor receives rights in the collateral (right to the car)
2. when value is given to the debtor by the creditor (actually receiving the car)
3. the security agreement is signed

Question 14

which partnership decisions require unanimous consent?

Answer 14

• admitting a new partner
• confessing in court
• submitting to arbitration
• disposing of partnership goodwill - assigning partnership property to creditors