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Fiona contracts to sell and ship goods to George on credit. Their contract simply states the price and provides that if George’s credit rating drops below a certain level, Fiona may demand cash or security before making shipment and may cancel if this demand is not met. Fiona demands cash or security before making a shipment, even though it knows that George’s credit is not impaired. Was any legal duty breached?

Is the argument valid?   

Which of the following enables courts to reverse agency actions that are “arbitrary, capricious, or an abuse of discretion”?

Department heads in independent agencies can be constitutionally removed by the President at will.

If a common law rule comes into conflict with the UCC, which will control the outcome?

Match the below laws with their correct legal descriptions:

Taylor, an accountant, prepares a financial statement as part of a registration statement that Alpha, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material fact that is not attributable to Taylor’s fraud or negligence.Elon relies on the misstatement, buys some of the securities, and suffers a loss. Can Taylor be held liable to Elon?    

Suppose an individual constructs a rocking chair with lumber that they do not own. The rocking chair is more valuable than the raw materials it was made with, the lumber. Who should legally gain title to the rocking chair?    

Maria is driving home from a business trip. She is caught in a snowstorm and is taken in by an elderly couple, who provide her with food and shelter. After the snowplows have cleared the road, Maria proceeds home. Maria’s boyfriend, John, is most appreciative of the elderly couple’s action and promises to pay them $500. The elderly couple, in need of funds, accept John’s offer. Then, because of a dispute between Maria and John, John refuses to pay the elderly couple the $500. Is there a binding contract? Why or why not?

Corporate and managerial officers act as agents of a corporation.