LAW 421 (Contemporary Business Law)

LAW 421 (Contemporary Business Law)

Week 4


WEEK 4 Discussion Question #1
 

•      What aretheUCCprinciplesofgood faithand reasonableness to sales contracts?

•      What arethedifferent ways thattitletransfers underUCCArticle2?

 •      Which partybears therisk?



•      What distinguishes asaleon approval,saleon consignment,andsaleor return underUCCArticle2?


WEEK 4 Discussion Question #2



Greg,Kim,Phil,and Tianyaeachown 20percent ofthesharesofacompanyand serveas theboard ofdirectors ofthecompany,HomeHealth,Inc. Samis also a20 percent shareholder,but sheisnot amemberoftheboardofdirectors.When Tianyadies,her husband Michaelinheritshersharesofstock that werethen worth

$100,000,and replaces Tianyaon theboard ofdirectors.Unfortunately, Michael is sogrief-stricken that heis completelyinattentiveto corporateaffairs.During this period,Greg,Kim,and Phil extend loans to themselves totaling$250,000 from corporatefunds that theyneverpayback. When Samdiscoversthat HomeHealth, Inc.is insolvent,shesues Michael forbreach ofhisdutyofcaretothecorporation.



•   Discuss Michael'sliabilityand fiduciaryduties.

MayMichael assertthelimited liabilityofthecorporateformas adefense?

•   Is it likelythat acourt will piercethecorporateveil?Explain.