RII

Question 1

to ratify a contract on behalf of a principal

Answer 1

the principal must have knowledge of all material facts

Question 2

contracts requiring some type of writing (mnemonic)

Answer 2

MYLEGS
M: Marriage
Y: Year– contracts impossible to perform within a year
L: Land
E: Executor – executor promising to be personally liable for debt of an estate
G: Goods – for $500 or more
S: Suretyship – contract to act as a surety (promise to pay the debt of another)

Question 3

the mailbox rule

Answer 3

acceptance of an offer is effective once offer is dispatched (mailed)

Question 4

if offer is held open, can it be revoked

Answer 4

yess

Question 5

surety

Answer 5

third party who promises to pay a creditor if a debtor does not pay. statute of frauds REQUIRES writing with signature of surety

Question 6

how to terminate an agency (4)

Answer 6

1. death/ insanity of either party
2. bankruptcy of principal
3. failure of agent to have proper license
4. destruction of subject matter

Question 7

(SDAGW) Secure Domestic Adults Greet Walruses

Answer 7

#1-5 in ch7 & 11 payback:
1- secured creditors
2- domestic support obligations
3- administrative costs (bankruptcy proceeding)
4- gap creditors
5- wages unpaid

Question 8

(EGCTPA) Employees Grill Companies To Pay Alot

Answer 8

#6-11 in ch 7& 11 payback:
6- employee benefits unpaid (within 180 days of filing & up to 13.65K)
7- grain producers & fishermen's claims
8- consumer deposits
9-taxes unpaid
10- personal injuries
11- all other debts

Question 9

contribution

Answer 9

a right to a pro rata payment of monies owed to a creditor is a right a surety has against a cosurety

Question 10

subrogation

Answer 10

surety’s right to succeed to the creditors rights against the principal debtor after the surety pays the creditor

Question 11

what does debtor not get to keep after filing bankruptcy

Answer 11

anything received within 180 days from divorce, inheritance, and insurance

Question 12

requirements for a ch 7 bankruptcy

Answer 12

monthly income over a five year period cannot exceed $13,650. they can file for ch 13 instead

Question 13

perfection (5)

Answer 13

sets secured party’s rights against third parties who also have interest in collateral

1) filing a FS
2) taking possession of collateral
3) automatic perfection
4) control
5) temporary

Question 14

if principal is undisclosed, how is liablity

Answer 14

agent is personaly liable on contracts entered on principals behalf
agents actual authority is the same as it would have been if identity was disclosed
principal is personally liable for any contracts entered by agent

Question 15

anticipatory repudation

Answer 15

one party states or otherwise indicates they will not perform contractual duties

Question 16

implied warranty of merchantability requires

Answer 16

requires a merchant seller

Question 17

self employment and FUTA

Answer 17

self employed do not pay taxes under FUTA

Question 18

3 elements of attachment

Answer 18

1) agreement between creditor and debtor (evidenced by debtor taking possession of collateral)
2) creditor must give value
3) debtor must have rights to the collateral

Question 19

typical rights of stockholders

Answer 19

(1) elect directors
(2) vote on fundamental changes:
- dissolutions
- amending articles of incorporation
- mergers
- consolidations
- compulsory share exchanges and sale of substantially all of corporations assets

Question 20

what needs to be included on articles of incorporation

Answer 20

name of corp, name of registered agent, name of incorporators, & # of shares authorized to issue and which stock has voting power