R8: BLAW 3 Flashcards
Definition of exoneration and subrogation in relation to a surety.
Exoneration: surety compel debtor to pay prior to paying creditor.
Subrogation: Once creditor is paid by a surety, the surety gains the rights of the creditor (i.e. if creditor was secured, etc.)
Liability of ER for EE torts
ER liable for torts of EE’s committed within the scope of employment.
FinCEN what is it and what can it pursue
Financial Crimes Enforcement Network and it can only pursue civil sanctions; not criminal
ER pays both ER and EE portion of FICA (without withholding from EE)
Is entitled to reimbursement from EE once tax is paid to gov’t.
Shareholders of an S Corp
Receive the pass-through tax liability of the s corp and cannot be foreign
When is notice not required to terminate agent’s apparent authority?
When the principal’s liability is discharged in bankruptcy.
Fair Debt Collection Practices Act applied to whom?
Collectors of consumer debt, is not applicable to debtors collecting on their own debts.
Effect of the release of a surety without the co-surety’s consent.
If “without reservation of rights”, the co-surety is discharged to the extent that the remaining surety could have recovered from the released surety. i.e. if surety’s were equal sureties initially, collection can only be half of what would have been collectible
Conditions of accepting goods for shipment under a non-negotiable bill of lading
Carrier must deliver goods to the consignee of the bill of lading.
Default tax treatment of LLC’s
Treated as partnerships
Effect of dividend declaration on corporation.
Once a dividend is declared, recipient becomes unsecured creditor of corporation until paid
Partnership interest in specific partnership property
Is neither assignable to creditors nor subject to attachment
