Why does the agent have personal liability when the principal is undisclosed?
Q: Acorn Marina, Inc. sells and services boat motors. On April 1, 1989, Acorn financed the purchase of…
A: Uniform commercial code includes laws that regulate the commercial transactions that take place in…
Q: Evaluate and explain why the concept of unlimited liability is a concern for the sole proprietor.
A: Sole proprietorship is a type of business ownership where all the ownership and control lies in the…
Q: Which is the best definition of a ‘general’ agent? a) An Agent who can only make a particular type…
A: The legal rules that govern the dynamic interaction between a principal and an agent are…
Q: On January 1, 2020 Alan made an interest-free loan of $200,000 to his son who used the loan to buy a…
A: Since here the beneficiaries of trust got the rights for withdrawal annually , the premium…
Q: Add more to this paragraph Under the Insolvency Act 1986, directors can be held personally liable…
A: The Insolvency Act 1986 is a crucial piece of legislation that outlines the legal responsibilities…
Q: Describe how the second contravention makes out the principal claim
A: Mr Clark Kent, the director of Superman Limited, has been accused of engaging in false and deceptive…
Q: On January 1, 2024, Jay Company acquired all the outstanding ownership shares of Zee Company. In…
A: Step 1:Introduction to ConceptsWhen a company (Jay Company) acquires another company (Zee Company),…
Q: A contractor has agreed to build a home for Jane for $300,000. Early in the construction of the…
A: Case Summary: A contractor will cost $300,00 for the construction of the home from Jane. But she…
Q: What is a release of liability clause (exculpatory clause)?
A: A release of liability clause, often referred to as an exculpatory clause, is a legal provision…
Q: and
A: It is a question of contract/ business law and contract law refers to an agreement between 2 or more…
Q: A partnership is required to register its business name with the appropriate state agency O In all…
A: Organizational goals specify the exact objectives that a business or organization hopes to achieve…
Q: Verisony sells iPhones to the public. Verisony sold and delivered an iPhone to Muriel on credit.…
A: Verisony has honed his security interest in the iPhone. This is due to the iPhone being a consumer…
Q: Give three (3) examples of implied revocation of an agency. Discuss each example thoroughly
A: Implied revocation of an agency refers to the termination or cancellation of an agency relationship…
Q: Promoters or incorporators remain liable for contracts made by them on a proposed corporation even…
A: Promoters or incorporators of a company start working before the corporation is registered or formed…
Q: When would an agent risk breaching a fiduciary duty?
A: A Person who is legally bound to put another's interests ahead of their own is a fiduciary person. A…
Q: The following clause was included in the engagement letter between Limits and Lobits, CPAS (L&L) and…
A: The inclusion of a clause in an engagement letter between Limits and Lobits CPAs (LAL) and their…
Q: 1.An entity shall offset an asset relating to one plan against a liability relating to another plan…
A: An entity shall offset an asset relating to one plan against a liability relating to another plan…
Q: Considering the following statements true or false. 1.Circumstances whereby the CFA member breaches…
A: Disclaimer: Since you have posted a question with multiple sub-parts, so we will solve first three…
Q: Zack was a partner in a management consulting firm that specialized in assisting small businesses in…
A: A partnership is described as a business that is formed through formal agreement and the partners…
Q: Explain the circumstances under which you feel a consumer bankruptcy is appropriate, and when the…
A: Consumer bankruptcy - Bankruptcy is a legal proceeding that is initiated when an individual or…
Agency law is a branch of legal principles that governs the relationships between principals and agents. An agency relationship is formed when one person (the principal) authorizes another person (the agent) to act on their behalf and to represent their interests in business or legal matters. Agency law establishes the rights, duties, and liabilities of both the principal and the agent in this relationship.
Step by step
Solved in 3 steps
- Kim Kardashian borrowed $200,000 from Big Bank to buy inventory to sell in her make-up shop. She signed a security agreement for the bank listing the entire present and future inventory in the make-up shop, including proceeds from the sale of inventory as collateral. Big Bank never filed a financing statement. A month later, Kim borrowed $50,000 from Kanye Creditor, who was aware of Big Bank’s security interest. Kim Kardashian then defaulted on both loans and declared bankruptcy. Who has priority, Big Bank or Kanye Creditor?Steven, an accountant, returning from his office, calls into a pub for a relaxing drink. He bumps into Paul, an old school friend, whom he has not seen for many years. During the course of the conversation over a number of pints, it emerges that Paul has recently inherited a substantial sum of money and is interested in investing in local businesses. Steven mentions that one of his clients, Precarious Ltd, is seeking financial backing and would make an attractive investment. By chance, he has a copy of the company’s accounts in his briefcase which he gives to Paul. Relying on these accounts, Paul invests £10,000 in Precarious Ltd, but loses everything when Precarious goes into liquidation six months later. In fact, the accounts had been prepared negligently and did not reflect the parlous state of the company’s affairs. Advise Paul.If a member of a limited liability company dissociates from the firm in violation of the operating agreement, the member can be held liable for any loss to the business resulting from the withdrawal. True False
- In 2022, Rebecca formed Black Corporation, a C-Corporation. Rebecca transferred real. estate with an adjusted basis of $260,000 and a fair market value of $390,000 in exchange for 100% of Black Corporation's common stock. The real estate was encumbered by a mortgage of $290,000, which Black Corporation assumed. The total value of Black Corporation's common stock after formation was $100,000. Q A N a) What amount of gain or loss is realized and recognized by Rebecca on the real estate transfer to Black Corporation? b) What basis does Rebecca take in her Black Corporation stock? c) What basis does Black Corporation take in the real estate contributed by Rebecca? 2 W S 3 X مو do command E D C R F 5 T V 6 G Y B 67 H U 8 N I 9 M O 0 V مو ob P commandA director using confidential information to trade in a company's shares is MOST likely to be in breach of the director's duty:A. to act in the company's best interests.B. to act with care, skill and diligence.C. to exercise powers for a proper purpose.D. to avoid a conflict of interests.Explain Subcontracting?
- "Lillian Pritchard was a director of Pritchard & Baird Corporation, a business founded by her husband. After the death of her husband, her sons took control of the corporation. For two years, they looted the assets of the corporation through theft and improper payments. The corporation’s financial statements revealed the improper payments to the sons, but Mrs. Pritchard did not read the financial statements. She did not know what her sons were doing to the corporation or that what they were doing was unlawful. When Mrs. Pritchard was sued for failing to protect the assets of the corporation, she argued that she was a figurehead director, a simple housewife who served as a director as an accommodation to her husband and sons. Was Mrs. Pritchard held liable?"You are a broker. Your sales associate is new and can't remember the key differences between lien types. You remind them: Liens can be voluntary or involuntary. Voluntary liens are created with the owner's consent. A lien can only apply to one piece of property a debtor owns Because of this, liens are always specific. Legally, liens cannot be involuntary. They must be created with the owner's consent and if they're not, they're illegal All liens affect all of the debtor's property. That's why they're also called general liens.Building and personal property coverage form Can cover which of the following expenses Except automobile held for sale Building additions Improvement and betterment Property of others
- Describe how the first contravention makes out the principal claimunder the NCC, what are the different acts or omissions of the obligor or debtor which will result in the breach of the obligation for which he can be held liable for damages?a debtor fails to appear at the Chapter 7 creditors' meeting, the court may refuse to grant the bankruptcy. True False