BUS LAW Final pt 1
United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to
Vista Estate
Business Sales Inc.'s debt to Cartage Company is past due. Cartage brings a legal action against Business Sales to collect. To ensure that a judgment in the creditor's favor will be collectible, Cartage asks the court to order the seizure of the debtor's property. This is a request for
a write of attachment
Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely
an agent
Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is
an employee
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is
an employee and agent
Refresh Inc.'s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring. This is a request for
an order of garnishment.
Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include
disposing of the collateral in any commercially reasonable manner.
A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.
false
A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.
false
Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law.
false
Agency relationships come about by voluntary consent and agreement of the parties—consideration is required, and the agreement must be in writing.
false
An independent contractor is, by definition, an employee.
false
Any person—including individuals, but not partnerships or corporations—may be a debtor under Chapter 7.
false
In an agency relationship, one party called the principal agrees to represent or act for another called the agent.
false
Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.
false
The duties that an agent owes a principal must be set forth in the agency agreement because they do not arise by operation of law.
false
The principal is bound by the agent's unauthorized act, unless the principal negates it.
false
With a joint checking account, the bank can hold any joint-account owner liable for payment of an overdraft even if that owner did not sign the check or benefit from its proceeds.
false
Owen is given value by Payday Sales Company in the form of a commitment to sell goods on credit. In terms of creating an enforceable security interest, this is
one of the requirements
Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is
the degree of the employer's control over the details of the work.
A bank may contractually shift to its customer the risk of forged checks created electronically or otherwise by the use of non-manual signatures.
true
A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.
true
Any person can be an agent, regardless of whether he or she has the capacity to contract.
true
Because checks serve as a substitute for cash, they can facilitate financial record keeping.
true
Because the speed of check-processing time is increasing, to avoid overdrafts, an account-holder needs to verify that funds are available to cover a check when it is written.
true
Business as we know it could not exist without secured transactions because otherwise sellers and lenders would be less likely to sell and lend on credit.
true
If an agent has represented himself or herself as possessing special skills, the agent is expected to use them.
true
Improper filing of a financing statement can render a security interest unperfected.
true
The destruction of an original check after the creation of a substitute check prevents the check from being paid twice.
true
When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.
true