Graded Homework

If a corporation is regarded as a de facto one the shareholders will be treated as partners.

A major factor in deciding whether the “piercing the corporate veil” rule will be applied to a purported corporation is whether its capitalization is “thin.”

The duty of selecting top corporate officers is for the governor of the state where the corporation is incorporated.

Directors of a corporation are allowed to create board committees, for example, a compensation committee.

An action is morally correct or right when, among the people it affects, it produces the greatest amount of good for the greatest number of people.

For every action, there is an equal and opposite reaction.

Life in a state of nature is solitary, nasty, brutish, and short.

The pursuit of individuals of their self-interest will respond in a corresponding increase in societal welfare.

Powers not given to the states by the U.S. Constitution are reserved for the federal government in Washington, D.C.

The states in the United States are not permitted to have their own constitutions because doing so could conflict with the U.S., that is, federal constitution.

The U.S. Congress has the power to create administrative agencies.

The doctrine of stare decisis means that one should not intently stare at a co-worker of the opposite sex since one might be sued for sexual harassment.

If a contract does not specify a time for performance, each party has a reasonable time to perform.

A satisfaction clause in a contract requires that the personal and subjective desires of the contract party be satisfied.

The substantial performance doctrine holds that a substantially performing party can recover the contract price minus any amount to correct the defect or deviation in performance.

Pursuant to the impossibility doctrine a party’s performance will be discharged if, without fault, of the party, performance is impossible to perform.

In order to create an agency relationship there must always be a written agreement prepared by an attorney.

An agency that comes into existence due to the acts or conduct of the parties is called an express agency.

Agency by ratification can occur in a situation where there was no authority for the agent’s actions when the agent originally undertook them.

An apparent agency can only be created by the actions of the agent.

Moral and ethical rules are too rigid and fixed over time.

Some persons would take actions which they believe to be moral, but which most persons in a society believe to be immoral.

Decisions require the measurement of qualities which are not subject to precise measurements.

Decisions are not allowed to take into account the mores or customs in a society.

The principal has a duty to compensate any agent, including a gratuitous one.

An agent is generally not liable on contracts made in connection with a fully disclosed agency.

The principal has a duty to cooperate with his or her agent.

A partially disclosed agency exists where the third party is aware that the party he or she is dealing with is an agent, but does not know the identity of the principal.

Consequential damages are awarded in breach of contract cases to cover all the damages, even if remote, that resulted from the original wrongful breach of contract.

A creditor beneficiary can sue directly to enforce a promisor’s promise made in an original contract.

A covenant not to compete in the sale of a business will be enforced but only if it does not unreasonably impair the ability of the covenantor (that is, the party making the promise not to compete) to make a good living for his or her family.

Statutes of Limitation are not enforceable since they may deprive a person of his/her “day in court.”