The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 1BS
(a)
Summary Introduction
Case summary: Persons C, O, and T want to establish a business of digital tablets. Person P tells that he will be in favor for the formation of the corporation. P enters into a contract with O for purchasing a piece of land. Person O is not aware of the way a corporation is formed at the time of signing the contract. P makes a contract with person B to construct a small plant on the property. The contract with person B is conditional on the formation of the corporation. The P secures all necessary documents and capitalization. P filed the articles of incorporation of the corporation.
To find:The liability of the corporation and person P for contracts signed with person O and person B.
(b)
Summary Introduction
Case summary: Persons C, O, and T want to establish a business of digital tablets. Person P tells that he will be in favor for the formation of the corporation. P enters into a contract with O for purchasing a piece of land. Person O is not aware of the way a corporation is formed at the time of signing the contract. P makes a contract with person B to construct a small plant on the property. The contract with person B is conditional on the formation of the corporation. The P secures all necessary documents and capitalization. P filed the articles of incorporation of the corporation.
To find: The liability of the corporation to the contract of person B once it is formed.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
True or false with explanation
6) Assume now that Gill lands a job at another college, which schedules him to teach Partnership Tax, Individual Income Tax, and Wills & Trusts. Gill is now ecstatic because he can finally teach law. Two weeks into his first semester, he asks when payday is. The president of the college notifies him that since this college is a nonprofit institution, NOBODY gets paid. The college has violated its duty of compensation.
7) Myron is a bouncer for the Keg Club and must forcibly eject unruly patrons on a nightly basis. The owners of the club cannot be held liable for any civil wrongs Myron may have committed while acting as a bouncer.
8) Myron is a teller at Wells Fargo Bank. On his way to work, he is stopped at the door by his evil boss, Skinflint, the bank president, who refuses to let Myron in the building. Skinflint has violated his duty of cooperation.
9) Assume that Glen is the latest phenom to come out of college to sign a professional baseball…
Which of the following represents an agency relationship?
1)
Horace wants to sell his farm and hires Marcie as his realtor. The two agree that if Marcie finds a buyer for the farm at Horace's price, then Horace will pay Marcie 7% of the price he receives.
2)
Bob dies and leaves his assets in a trust for his minor child, Lilly. In the trust, Bob appoints Reggie as the trustee to act for Lilly's benefit. Since Reggie has a fiduciary duty to Lilly as trustee, Reggie is Lilly's agent.
3)
Lucy contracts to sell her car to Tony for $5,000. Tony purchases the car only to find it not in the condition that Lucy described it. Tony is claiming that Lucy violated her fiduciary duty to him as his agent under the agreement.
4)
Hunt is an attorney of questionable ethics. Roger, one of Hunt's clients, is arrested for DUI, but appears to be too intoxicated to consent to a breath test. Hunt is contacted by…
Zuhair, section associate in Almadar company has found the fraud done by one of his colleagues in his section. In this situation, which of the following option is appropriated initial action of Mr. Zuhair to do if he does whistleblowing?
a.
Discuss the issue with the family as they may be affected
b.
Leave the company
c.
Approach immediate manager and make the manager aware of the issue
d.
Go outside the company and discuss with the media
Chapter 18 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Knowledge Booster
Similar questions
- Which of the following could not become a partner in a general partnership? Why? Jose, age 23, a citizen of Mexico The XYZ general partnership The JT Corporation Maria, age 16 All of the above could become partnersarrow_forwardWhich of the following premortem actions can increase the liquidity of a decedent's estate? Making certain that a client's will is executed with all of the required legal formalities Stating reasons in a client's will why a close family member is not receiving any part of the client's estate Urging a client to keep written current records of payments made by the client on debts owed to third parties Urging a client to require written security for a promissory note given to the client for assets purchased from the client A) I, II, and IV B) I and II C) I, II, III, and IV D) III and IVarrow_forwardBailey is a limited partner in his company. A general partner in his company is going on an extended vacation and has asked Bailey to run the company while he is gone. If Bailey agrees to do so, he will no longer qualify as a limited partner. ( a) True b) Falsearrow_forward
- SECTION D Read the following extract and then answer the question belowA client is interested in setting up a business and does not know which form of business to use. He has been told that he can form a sole proprietorship, or partnership, or a limited liability company. He comes seeking for business advises on the advantages and disadvantages of a registered company. Make a comparison between a sole proprietorship, partnership, and a limited liability company.arrow_forwardSue is a fifty-five year old employee of company A. Her children are out of college and her parents have both died. Company A offers a child care program to all employees along with an elder care program. However, Sue, like many other employees, has no need for these services, neither now or in the future. Should the firm retain these programs? Should alternative benefits for employees who have no use for such services be offered?arrow_forwardMr. Ahmed, the general partner of a big furniture store in Muscat is going to contribute a bigger share of money to settle the partnership's liabilities to its creditors. Why Ahmed is going to do so? A. General partners have a distinct legal personality B. None of the choices are correct C. General partners will contribute more because they have more money D. General partners have unlimited liabilityarrow_forward
- ETHICS Pete, an accountant, recommended that several of his clients invest in Competition Aircraft. These clients passed this recommendation on to Arlene, who did invest. Unfortunately, Competition was a fraudulent company that pretended to sell airplanes. After the company went bankrupt, she sought to recover from Pete. Is Pete liable to Arlene? Whether or not Pete faces legal liability, is it a good idea for accountants to recommend investments to clients? Does that practice create any potential conflicts of interest?arrow_forwardTRUE OR FALSE. Write True if the statement is true. Otherwise, write false.1. Business advertisement is a valid offer.2. Deaf-mutes have no capacity to give consent.3. Fraud voids a contract.4. If B gives his consent due to A’s threat of exposing his marital affairs, there will be nocontract because consent is vitiated.5 Exaggerations in trade are not fraudulentarrow_forwardMr. Chan works in Malaysia but is a citizen of Singapore where his company is organized andheadquartered. Mr. Chan is an expatriate, who is a citizen of the company's home countryworking in a foreign country. Ms. Hamidah is Mr. Chan's executive secretary in Malaysia, butunlike Mr. Chan, she is a citizen of Malaysia and is considered a host-country national. Sheis an employee hired by a foreign company to work in her own country. Mr. Alex works for thesame company as Mr. Chan and Ms. Hamidah in Malaysia, but he is an Australian. Anemployee like Mr. Alex who is a citizen of one country but works in another country for acompany that is headquartered in a third country, is called a third-country national. Mr.Chan, Ms. Hamidah, and Mr. Alex are examples of MNC’s staffing approach. MNCs facedifferent challenges with employee selection leading them to use certain staffing approaches.The international HR department must have an innovative idea about the skills and availabilityof human…arrow_forward
- What is one of the primary roles that agency law plays in partnerships? Group of answer choices: A. Controls formation of the entity. B. Dictate how the partners can operate the business. C. Whether or not a partner can bind the partnership to obligations or liabilities. D. Dictates what the operating agreement must state..arrow_forwardWhich of the statements-relatedto stakeholder conflict in businessis FALSE? A. Stakeholders are those who own the business and they may have differences in opinions on the direction of the business.B. Agency conflict is present when the agent does not act in accordance to the expectations of the principal.C. An example of an agent is the board of directors who represents the numerous stockholders.D. Rank and file employees may prioritize achieving the identified performance measures to obtain additional financial compensation but in doing so, may cause concerns to other employees and departments.arrow_forwardWhich of the following statement describe a sole proprietorship? a. Owner in sole proprietorship has less responsibility in running his business compared to partnership b. The owner of sole proprietorship has less available capital compared to partnership c. The sole proprietorship business has unlimited capital compared to partnership d. The liability of sole proprietor is limited compared to partnershiparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education