Chapter Four Sales 1 Part 1: Introduction 1 A. Subject Matter of Article 2 1 I. Sale 1 II. Goods i III. Goods attached to realty 2 1. Crops 2 2. Minerals 2 3. Fixtures, 2 4. Services 2 B. Definitions 2 I. Merchants 2 II. Good Faith 3 Part 2: Formation 3 A. Offer and Acceptance 3 I. Firm Offer 3 II. Medium of Acceptance 5 1. Any Reasonable Manner 5 2. Acceptance by Shipment 5 III. Acceptance by Performance 5 IV. Battle of the Forms 5 B. Defenses 7 I. Statute of Frauds 7 1. Writing 7 2. Confirmatory Memo Rule 8 II. Unconscionability 8 III. Statute of Limitations 8 C. Parol Evidence Rule 8 D. Terms of the Contract 9 E. Modification 10 Part 3: Performance of the Contract 12 A. Performance by Seller 12 I. Shipment by Seller, 12 II. Noncarrier Cases. 12 III. Repudiation 13 B. Performance by Buyer 14
I. Acceptance and Payment of Goods 14 1. Acceptance 14 2. Payment 14 II. Right of Inspection 14 1. Exercising Right of Inspection, 15 2. Rejection 15 Part 4: Remedies 16 A. Seller's Prelitigation Remedies 16 I. Right to Withhold Delivery or Demand Cash Payment 16 II. Reclamation of Goods 16 III. Stoppage in Transit 17 IV. Identifying Conforming Goods 17 V. Resale 17 VI. Cancellation 17 B. Buyer's Prelitigation Remedies 18 I. Sale of Goods to Recover 18 II. Cover 18 III. Recoupment 19 C. Seller's Litigation Remedies 19 I. Action for Full Purchase Price 19 1. Technical "Acceptance" by Buyer 20 2. Passage to Buyer of Risk of Loss 20 3. "White elephant?" goods 20 II. Action for Damages for Nonacceptance 20 1. Contract-Resale Differential 20 2. Contract-market Differential 21 3. Lost Profits 21 D. Buyer's Litigation Remedies 22 I. Possessory Actions 22 1. Replevin 22 2. Specific Performance. 22 II. Action for Damages for Non-delivery 23 1. Contract-cover Differential 23 2. Contract-market Differential 23 3. Consequential Damages 23 4. Incidental Damages 23 5. Deduction for Expenses Saved 24 E. Limitation of Remedies 24 I. Liquidated Damages Provision 24 IL Limitations on Damages 24 III. "Exclusive Remedy" Provision 25 II
Part 5: Warranties 26 A. Warranty of Title 26 B. Express Warrenties 26 I. Statement of Fact or Promise 26 1. Form of warranty 26 2. Sellers's Intent or Culpability Immaterial 27 II. Basis of the Bargain 27 1. Time of Warranting 27 2. Unread Warranties 27 C. Implied Warrenties 27 I. Warranty of Merchantability 28 II. Implied Warranty of Fitness 30 D. Disclaimer of Warranties 30 I. Disclaiming Express Warranties 30 II. Disclaiming Implied Warranties 30 1. By Specific Language 30 2. Disclaiming the Implied Warranty 31 3. Timing the Disclaimer 31 E. Remedies For Breach of Warranty 31 I. Before Acceptance 31 II. After Acceptance 31 1. Loss in Value of Goods 31 2. Consequential Damages 32 3. Incidental Damages 33 Further Reading 33 Chapter Five Law of Torts 34 Part 1: Law of Torts 34 A. Intentional Torts 34 I. Intent 34 1. Act by the Defendant 34 2. Specific and General Intent 34 3. Transferred Intent 35 II. Battery 36 1. Offensice contract 37 a) Definition 37 b) Criteria 37 c) Extended Personality 37 2. Intent 38 III
3. Causation 40 a) Extent 40 b) Thin skull rule 41 III. Assault 41 1. Apprehension 42 a) No hostility required 42 b) Tests for apprehension 42 c) Awareness 42 d) Imminent 43 e) Words 45 2. Intent 45 IV. False Imprisonment 46 1. Methods of Confinement 46 2. Insufficient Forms of Confinement 48 3. No Need to Resist 48 V. Intentional Infliction of Emotional Distress 49 1. Extreme and Outrageous Conduct 50 2. Intent and Transferred Intent 51 VI Trespass 52 1. Physical Invasion 52 2. Entries above the Surface 52 3. Intent 53 VII. Trespass to Chattel and Conversion 53 1. Trespass to Chattel 54 2. Conversion 54 a) Dispossession 54 b) Destruction 54 c) Misdelivery 55 d) The Bona Fide Purchaser of Converted Goods 55 3. Tresspass to Chattels and Conversion 55 B. Defenses to Intentional Torts 55 I. Consent 56 1. Capacity 56 2. Express Consent 56 3. Implied Consent 56 4. Scope and Termination of Consent 57 5. Consent to Medical Treatment 57 II. Self Defense 58 1. Retreat 58 2. Reasonable Force 58 IV
III Defense of Property 59 1. Standard of Reasonableness 59 2. Deadly Trap Rules 60 IV. Recapture of Chattels 61 C. Intentional Torts Regarding Dignitary Injury 61 I. Defamation 61 1. Defamatory language 62 2. Publication 62 3. Damage to Plaintiff's Reputation 62 a) Libel 62 b) Slander 63 4. Defenses 63 a) Absolute Privilege 63 b) Qualified privilege 63 c) Truth 63 II. Invasion of Right to Privacy 64 1. Appropriation 64 2. Intrusion on Plaintiffs Seclusion 64 3. False Light 64 4. Public Disclosure of Private Facts 64 Part 2: Negligence 65 A. Duty of Care 66 I. Palsgraf v. Long Island Railroad Co 66 II. Custom 68 III. Statutory Standard of Care 68 IV. The Relevance of Personal "Circumstances" 70 1. Disability 70 2. Mental Illness 71 3. Children 72 a) General 72 b) Adult activities 73 V. The Relevance of External Circumstances 74 VI. Occupiers of Land 75 1. Trespassers 75 2. Licensees 76 3. Invitees 76 VII. Establishing Breach - Res Ipsa Loquitur 77 VIII. Causation 78 1. Proximate Cause 78 2. Intervening and Superseding Cause 79
IX. Defenses 80 1. Contributory negligence 80 2. Comparative negligence 81 3. Assumption of Risk 82 a) Express assumption of risk 82 b) Implied assumption of risk 82 4. Statute of Limitations 82 Part 3: Strict Liability 83 A. Abnormal Dangerous Activities 83 I. The Old Concept 83 II. Later Developments 84 1. Explosives and high energy activities 85 2. Poisons and other toxic material 85 B. Product Liability 85 I. General rule 85 II. Defective :.. 86 1. Unavoidably unsafe products 86 2. Measured by time of sale 86 3. Obvious dangers 86 III. Design Defects 86 1. Negligence predominates 87 2. Suitability for unintended uses 87 a) Unforeseeable misuse 87 b) Foreseeable misuse 87 IV. Warning 87 1. Manufacturing defect 88 2. Design defect 88 3. Properly manufactured and designed product 88 4. Latest developments 89 Further reading 89 Chapter Six Business Associations 90 Part 1: Doing Business 90 Part 2: Sole Proprietorship 90 A. Beginning of Operation 91 B. Ownership 91 C. Continuity and Transferability, 91 VI
Part 3: Partnership 92 A. "General" Partnership 92 I. Applicable Law 92 II. Formation 93 1. Agreement 93 a) Capacity 93 b) Formalities 94 c) Legality of Purpose 94 2. Partnership by Estoppel 94 a) Liability of Person Who Is Held Out as Partner 94 b) Liability of Person Who Holds Another Out as Partner... 94 III. Relations Between Partners 96 1. Participation in Management 97 2. Remuneration 98 3. Indemnification 98 4. Contribution 99 5. Fiduciary Duty 99 6. Information 99 7. Legal Actions between Partners 99 a) General Rule 99 b) Actions for an Accounting 99 IV. Relations of Partners to Third Parties 100 1. Authority 100 a) Actual Authority 100 aa) Authorized by Agreement 100 bb) No Specific Authorization 100 b) Apparent Authority 100 2. Liability 101 a) Liability of Present Partners 101 aa) Contract Liability 101 bb) Tort Liability 101 b) Liability of an Incoming Partner 102 c) Liability of a Retiring Partner 102 V. Dissolution 102 1. Types of dissolution 102 a) Act of the Parties 103 b) Dissolution by Operation of Law 103 c) Dissolution by Decree 103 2. Notice 103 3. Business Transactions After Dissolution 104 4. Distribution of Assets 104 VII
B. Limited Partnerships 105 I. Applicable Law 105 II. Two Types of Partners 106 III. Formation Requirements 106 1. Name 107 2. Contribution 107 IV. Liability of Limited Partners 107 1. Exceptions of the Limitation 108 a) Limited Partner Participates in Control of Business 108 b) Limited Partner's Name Used in Partnership Name 109 2. Liability Because of the Agreement 109 V. Rights of Limited Partners 109 1. Voting Right 109 2. Sharing of Profits and Losses 110 3. Right to Information 110 4. Interest Assignable 110 5. Business Transactions with a Partnership 110 6. Withdrawal of Limited Partner Ill 7. Right to Dissolve Ill VI. Rights and Liabilities of a General Partner Ill VII. Dissolution Ill 1, General Principles Ill 2. Distribution of Assets 112 Part 4: Law of Corporations 112 A. General principles 112 I. Characterisation 112 1. Free Transferability of Ownership Interests 112 2. Limited Liability 113 3. Continuity of Existence 113 4. Centralized Management 113 5. Entity Status 113 6. Taxation 113 IL Distinction Among Corporations 113 III. Applicable Law 114 B. Organization 114 I. Purpose.. 114 II. Document of Incorporation 115 1. Content of Filing Document 115 2. Amendment of the Initial Document 115 III. Bylaws 115 VIII
C. Transactions by Promoters Before Incorporation 117 I. Basic Function of Promoters, 117 II. Promoter's Liability 118 1. Awareness of the Promoter, 118 2. Contract says that a Corporation is not Formed 118 a) Never Formed, or Immediately Defaults 118 b) Formed and Then Adopted 118 III. Liability of Corporation 119 IV. Promoter's Fiduciary Obligations 119 D. Defective Incorporation 119 I. Common law "de facto" Doctrine 119 II. Corporation by Estoppel 120 E. Piercing the Corporate Veil 120 I. Traditional Test 120 II. Individual shareholders 120 1. Tort vs. contract ("voluntary creditor"), 120 2. Fraud 120 3. Inadequate Capitalization 121 a) Zero Capital 122 b) Siphoning 123 4. Failure of Formalities 123 III. Parent/Subsidiary 123 1. No Liability Generally 123 2. Factors 123 IV. Brother/Sister ("Enterprise Liability") 124 F. Corporate Finance 124 I. Introduction 124 II. The Issuance of Common Shares 125 1. Common Shares 125 2. Par Value 125 3. Price of Shares 125 III. Issuance of More Than a Single Class of Shares 126 1. Preferred Shares 126 2. Equivalence of Shares Within a Class or Series 126 G. Statutory Scheme of Management and Control 127 H. Directors 127 I. Number and Changes 127 II. Meetings, Quorums and Notice 128 1. Notice 128 2. Quorum 128 3. Voting 128 IX
III. Compensation 128 IV. Resignation and Removal 128 V. Filling of Vacancies 129 VI. Decisions 129 VII. Duties of Care and Loyalty 129 1. Insider Trading 129 a) Dealing with Noninsider Shareholders 130 b) Dealing with Corporation 130 c) Exploiting Inside Information in Market Trading 130 2. Sale of Office 132 3. Business Judgment Rule 132 VIII. Liabilities and Suits Against Directors and Officers 133 1. Statutory Liabilities of Directors 134 2. Persons who May Bring Action 135 J. Officers 137 I. Statutory Designations of Corporate Officers 137 1. Traditional Statutes 137 2. Flexible Modern Statutes 137 II. Authority of Officers in General 137 1. Oral Representations by Officer 138 2. Reliance on Officer's Title, 138 3. Reliance on Certified Resolution 138 III. Duties of Officers 138 IV. Liability 139 1. Express Guarantee 139 2. Confusion of Roles 139 3. Statutory Liability 140 4. Personal Participation in Tortious Conduct 140 5. Actions in Excess of Authority 140 V. Tenure of Officers and Agents 140 1. Employment Contracts in General 140 2. Lifetime Employment Contracts 140 3. Discharge for Cause 140 K, Shareholders''Rights and Powers 141 I. Rights in Management of Corporation 141 1. Not Management of Day-to-day Business 141 2. Certain Methods of Control 141 3. Special Provision for "Nonpublic" Corporations 142 II. Shareholders' Meetings 142 1. Place of Meetings 142 2. Notice 142 3. Eligibility to Vote 143 X
III. Proxy Rules 143 1. Form of Proxy Authorization 143 2. Expiration of Proxy Authorization 144 3. Revocability of Proxy 144 IV. Voting Rights 144 1. Quorum 144 2. Certain Requirements 145 a) Election of Directors, 145 b) Other Action 145 c) Cumulative Voting 145 V. Class Voting 145 VI. Voting Trusts 145 VII. Dividends 147 1. Generally 147 a) Capital Tests 147 b) Nimble Dividends 147 c) Insolvency Test 148 2. Liability of Directors 148 a) Bad Faith 148 b) Negligence 148 c) Creditor Suit 148 3. Liability of Shareholders 148 a) Common Law 148 b) Statute 149 L. Resolution of Disputes 149 I. Dissension and Deadlock 149 II. Dissolution 149 1. Kinds of Dissolution 150 2. Grounds of Dissolution 150 Part 5: Limited Liability Company 151 A. Purpose 151 B. Formation 151 I. of Articles 151 II. Publication 152 III. Management 152 C. Liability of Members 152 D. Sharing Profits and Losses... 152 E. Transfers of Interest 153 F. Dissolution 153 Further reading 153 XI
Chapter Seven Procedural Questions 154 Part 1: Introduction 154 Part 2: Federal Courts 154 A. Structure 154 I. Supreme Court 153 II. Trial Courts 154 III. Appellate Courts 154 B. Judicial Process 156 I. An Adversarial System 156 II. Fees and Costs of Litigation 156 III. Procedural Rules for conduct of Litigation 156 C. Civil Cases 157 I. Discovery 157 Desposition 157 II. Alternative Dispute Resolution 158 III. Trial 158 1. Principles of Conduct 159 2. Objections 159 3. Final Stage 159 D. Criminal Cases 160 I Pretrial Interrogation 160 II. Initial Apperarance 160 III. Arraignment 160 IV. Burden of Proof 161 V. Result of the Verdict: Not Guilty 161 VI. Result oft the Verdict: Guilty 161 E. The Appeals Process 162 I. Trial Court Actions that are Reviewable 162 1. Interlocutory Appeals 162 2. Mandamus 162 II. Grounds 163 III. Panel's Decision 163 IV. Supreme Court 163 Part 3: The Jury 164 A. Civil Trial Jury 164 I. Number of Jurors 164 XII
II. Unanimity 165 III. Jury Sektion 165 1. Dismissal for Cause 165 2. Challenges Without Cause 165 3. Balanced Pool 165 4. Alternates 166 5. Instructions 166 6. Juror Misconduct 166 B. Criminal Trial Jury 166 C. Grand Jury 166 Part 4: Jurisdiction 167 A. Personal Jurisdiction 167 I. In Personam Jurisdiction 168 1. Presence 168 2. Domicile 169 3. Residence 170 4. Consent 170 5. Non-resident Motorist 170 6. In-state Tortious Conduct 170 7. Owners of in-state Property 171 8. Conducting Business 171 9. Domestic Relations Cases 172 II. In Rem Jurisdiction 172 IIL Quasi in Rem Jurisdiction 172 IV. Jurisdiction over Corporations 174 1. Minimum Contacts 174 2. Dealings With Residents of Forum State 176 3. Product Liability 176 4. Unreasonableness 178 5. Class Action Plaintiffs 178 C. Subject Matter Jurisdiction 178 I. State Courts 178 1. General Versus Limited Jurisdiction 178 2. Exclusive Versus Concurrent Jurisdiction 179 II. Federal Courts 179 1. Federal Question Jurisdiction 179 a) Interpretation of Federal Law 179 b) Claim Based on the Merits 180 c) Anticipation of Defense 180 XIII
2. Diversity of Citizenship 180 a) Date For Determining 180 b) Domicile 180 aa) Resident Alien 180 bb) Presence of Foreigner 180 c) Complete Diversity 181 d) Amount in Controversy 181 e) Pleading not Dispositive 181. III. Supplemental Jurisdiction 181 D. Venue 181 I. State action 181 1. Residence 181 2. Forum non conveniens 182 II. Venue in Federal Actions 182 1. Three methods 182 2. "Defendant's residence" venue 182 3. "Place of events or property 11 venue 182 4. No "plaintiff's residence" venue 182 5. Corporation 183 Part 5: Class Action 184 A. Introduction 184 I. Jurisdiction 184 II. Binding on absentees 184 III. Defendant class 184 B. Prerequisites 184 I. Size 184 II. Typical clains 184 III. Fair representation 185 C. Binding effect 185 D. Attorneys' fees 195 Federal statute requires 185 Further reading 185 Vocabulary 187 Index 207 XIV
PPN: 117416215 Titel: Introduction to the US American legal system / von Alexander Dörrbecker; Oliver Rothe. -. - Münster : Jur. Lehrgänge Alpmann u. Schmidt, 2005 ISBN: 3-89476-800-2 Bibliographischer Datensatz im SWB-Verbund