REG Deck 5 Flashcards

1
Q

What is one example when a voluntary petition in bankruptcy will be denied?

A

If the debtor failed to keep or preserve adequate books and records

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2
Q

When is an offer made by an offeror not revocable?

A

When the offeree paid consideration to keep the offer open (aka option)

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3
Q

What are the four exceptions to the statue of frauds?

A

SWAP
Specially manufactured goods
Where a merchant sends another merchant a WRITTEN CONFIRMATION
Contract that parties have ADMITTED in court
Contracts that have been PERFORMED

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4
Q

If the seller is not a merchant, when does the risk of loss pass to the buyer?

A

When the seller notifies the buyer that the goods are ready for deliver/pick up

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5
Q

If the seller is a merchant, when does the risk of loss pass to the buyer?

A

Risk of loss passes only when the goods have actually been delivered to the buyer.

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6
Q

When does risk of loss pass to the buyer when it is FOB seller’s place?

A

Risk of loss passes when the seller gets the goods to the carrier

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7
Q

When does risk of loss pass to the buyer when the contract is FOB buyer’s place?

A

Risk of loss passes when the goods reach the destination and seller notifies that the goods have been delivered.

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8
Q

If the goods are nonconforming, risk of loss is always on the ____________ regardless of the shipping terms.

A

seller

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9
Q

Implied in every sales contract is the warranty that the seller has good title and the right to transfer that title

A

implied warranty of title

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10
Q

The implied warranty of title can be disclaimed only ___________ (I do not warrant title) or _____________ (judicial sale)

A

specifically
circumstance

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11
Q

The express warranty is that the goods will conform to the statement of _______, to the description, or the sample or model

A

fact

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12
Q

This arises by the sale of goods where seller has a reason to know of particular purpose and of buyer’s reliance on seller to choose suitable goods

A

warranty of fitness for particular purpose

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13
Q

This arises by sale of goods of the kind regularly sold by the merchant that the goods are fit for ordinary purposes

A

implied warranty of merchantability

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14
Q

When is a writing necessary to create a principal agent relationship?

A

If the agent will enter into land sale contracts

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15
Q

If a partner wants to sell their shares and there is no mention of a buyout process in the partnership agreement, how is the value of the shares decided?

A

FMV of the shares

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16
Q

What are the things that are required to perfect a security interest?

A

Attachment of the security interest
authorization by the debtor
filing a financing statement

17
Q

What are the six ways when termination of agency by operation of law happens?

A

DIDFAS
DEATH of either the principal or the agent
INCAPACITY of the principal
DISCHARGE in bankrupty of the principal
FAILURE to acquire a necessary license
DESTRUCTION of the subject matter of the agency (asset being purchased by agent is destroyed)
SUBSEQUENT illegality

18
Q

When do principal-agents have to notify third parties that the relationship has ended?

A

However, in cases where the termination is not due to operation of law but rather by mutual agreement or unilateral decision, third parties who have previously dealt with the agent may need to be notified to avoid any apparent authority issues.

19
Q

What is the key phrase to determine whether a principal will be labile for an agent’s torts?

A

If the tort was committed within the scope of employment
The agent must also be an employee

20
Q

What are the three things that a credit may do when a debtor defaults in a suretyship?

A

Immediately demand payment from the surety
Immediately demand payment from the debtor
Immediately go after collateral, if there is any

21
Q

A key point to remember is that a security interest cannot be ____________ before it ___________ to collateral, but they can occur at the same time.

A

perfected
attaches

22
Q

When does personal holding company status apply to a corporation?

A

The corporation is greater than 50% owned by five or fewer individuals at any time during the last half of the tax year
60% of the adjusted ordinary income is from personal holding company income ( investments in stocks or securities)

23
Q

A clause in a contract that specifies what damages will be if there is a breach

A

liquidated damages

24
Q

What credit is available to low and moderate income taxpayers for contributions to qualified employer sponsored retirement plan or IRA?

A

Retirement Savings Contributions Credit (Saver’s Credit)
It is a nonrefundable tax credit