Jordan Motors, Inc. opens a dealership in Frankfurt, West Germany, selling American cars. In its advertising campaign, Jordan claims that for the next two weeks only, it will beat the price on any...

1. The PMPA regulates only the circumstances in which service-station franchisors may terminate a franchise or decline to renew a franchise relationship. Are there any reasons why Congress might have...

Multiply Choice 1. Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? (a) Filing a...

Jie owns a lawn mower repair business. Her repair shop is in a building she constructed on the lot on which her personal residence is located. How should Jie account for each of the following? a....

Tomiko owns the copyright to several classic Motown songs. In 2009, he became aware that Tinseltown Records was selling several of his songs without his permission. He sues Tinseltown seeking...

Initiate, Inc., a 501(c)(3) organization, receives the following revenues and incurs the following expenses. Grant from Gates Foundation $ 70,000 Charitable contributions received .. 625,000...

In early 2009, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of...

Based upon the following facts of Fred, Inc., calculate adjusted current earnings (ACE): Alternative minimum taxable income (AMTI) ....... $7,220,000 Municipal bond interest ................ 630,000...

An agent of Thor Food Service Corp. was seeking to sell Makofske a combination refrigerator-freezer and food purchase plan. Makofske was married and had three children. After being informed of the...

Sonenberg Company managed Westchester Manor Apartments through its on-site property manager, Judith. Manor Associates Limited Partnership, whose general partner is Westchester Manor, Ltd., owned the...

Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lions share of Continentals dividends. Continental Corporation was eager to close an important...

Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution...

In general, courts are reluctant to grant shareholders petitions for corporate dissolution except in extreme circumstances, such as when corporate directors or shareholders are deadlocked and the...

While performing an audit of TCC Corporation, the audit team noticed something that didnt look right. The companys receivables aging report showed that bank loan eligible receivables were...

In what two ways could a paralegals conduct, even if technically accurate, be considered the unauthorized practice of law?

Noah, who has $62,000 of AGI before considering rental activities, has $70,000 of losses from a real estate rental activity in which he actively participates. He also actively participates in another...

The Park Plaza Hotel awarded its valet and laundry concession to Larson for a three-year term. The contract contained the following provision: It is distinctly understood and agreed that the services...

Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food containerproducing company based in Cairo, Egypt, to enable...

Chilla Mitchell decided to sell her 1995 Cadillac Concours. She talked to Tommy Thrash, the proprietor of an automobile dealership called "Repro City," and Thrash assured her that he could get...

Investors formed Peach Corporation in Year 1. Its current E&P (or current E&P deficit) and distributions for Years 1 through 4 are as follows: What is Peachs accumulated E&P at the beginning of Years...

On January 1, Damon, for consideration, orally promised to pay Gary $300 a month for as long as Gary lived, with the payments to be made on the first day of every month. Damon made the payments...

Joe Brown gave to his wife, Mary Brown, $350,000 with which to buy real property. They orally agreed that title to the real property should be taken in the name of Mary Brown but that she should hold...

Suppose that all of the checks issued to the defendants were made payable to Fasig-Tipton Co., Fasig-Tipton Midlantic, Inc. Under the Uniform Commercial Code, were the instruments payable jointly or...

Jasmine Gregory is a 20% member in Sparrow Properties LLC, which is a lessor of residential rental property. Her share of the LLC's losses for the current year is $100,000. Immediately before...

Seal Polymer Industries sold two freight containers of latex gloves to Med-Express, Inc., a company based in North Carolina. When Med-Express failed to pay the $104,000 owed for the gloves, Seal...

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000...

Dwayne Maddox and his wife, Amanda, were driving home on a highway in their Nissan Pathfinder SUV. Dwayne, who was driving the vehicle, weighed 170 pounds, and Amanda, who was sitting in the...

Judith and Donald Eckstein were married and had two daughters. Years later, Judith left the marital abode in the parties jointly owned Volkswagen van with only the clothes on her back. She did not...

Pierre is a certified high school teacher in Kansas. During the year, his wifes employer transfers her to New Jersey. In applying for a job in New Jersey, Pierre is informed that he will be granted...

Thomas Baker and others who bought new homes from Osborne Development Corp. sued for multiple defects in the houses they purchased. When Osborne sold the homes, it paid for them to be in a new home...

Ronald O. Perelman, chairman of the board and CEO of Pantry Pride, met with his counterpart at Revlon, Michel C. Bergerac, to discuss a friendly acquisition of Revlon by Pantry Pride. Revlon rebuffed...

Assume that Wrigley Juice is a partnership owned equally by Vinnie and Chandra. Explain the effect of Wrigleys results on Vinnies and Chandras tax returns. Wrigley Juice has the following income,...

Lisbeth makes the following interest-free loans during the year. The relevant Federal interest rate is 5%, and none of the loans are motivated by tax avoidance. All of the loans were outstanding for...

Betty, a married taxpayer, makes the following gifts during the current year (2015): $20,000 to her church, $50,000 to her daughter, and $40,000 to her husband. What is the amount of Bettys taxable...

Pine Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Connor, who has always operated it as a C corporation. However, at the beginning of this year, Connor made...

Several years ago, Pierce purchased a tract of land on which stood an old, vacant house. Recently, Pierce employed Fried, a carpenter, to repair and remodel the house. While Fried was tearing out a...

Charles Zandford was a securities broker for Prudential Securities, Inc., in Annapolis, Maryland. In 1987, he persuaded William Wood, an elderly man in poor health, to open a joint investment account...

Elizabeth, a widow since 2000, made taxable gifts of $3 million in 2011 and $4 million in 2015. She paid no gift tax on the 2011 transfer. What is her tax base for determining any gift tax on the...

Amy has LTCGs that are taxed at different tax rates, 15%, 25% and 28%. She also has NSTCLs that amount to less than her NLTCG. The procedure for offsetting the NSTCL against the LTCGs is favorable to...

Procter & Gamble (P& G) began a Pampers catalog promotional offer in 1981. A statement on each box of Pampers explained that by saving the teddy bear proof-of- purchase symbols (Teddy Bears points)...

Manuel is an employee of Etowah Corporation and has worked for the company for 22 years. Employees are not required to contribute to the companys defined benefit plan. Based on the plan, Manuel can...

The Banco Central administered a humanitarian plan for the government of Ecuador. Fernando Banderas and his wife presented false claims that the bank paid. After the fraud was discovered, the bank...

On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400.85. During the first one and one-half months after the purchase, Peckham discovered that the cars hood was dented, its gas tank...

Hutchinson Baseball Enterprises, Inc. (Hutchinson, Inc.), was incorporated under the laws of Kansas. Some of the purposes of the corporation, according to its bylaws, were to promote, advance, and...

The Fruehauf Corporation (Fruehauf) is engaged in the manufacture of large trucks and industrial vehicles. The Edelman group (Edelman) made a cash tender offer for the shares of Fruehauf for $ 48.50...

Below are the six steps of the tax research process, in random order. Please rearrange these steps into the correct order. a. Locate authority. b. Identify the issues. c. Get the facts. d....

Indicate whether each of the following items is considered a primary authority or a secondary authority. a. Fin Hay Realty Co. v. U.S., 22 AFTR 2d 5004 (CA-3, 1968). b. 702(a). c. Rev. Proc. 77-37,...

Paul Preppie is an accountant for the Very Big (VB) Corporation of America, located in Los Angeles. When Paul went to work for VB, he did not have a college degree. VB required that Paul earn a B. S....

Last year, Patty contributed land with a $4,000 basis and a $10,000 FMV in exchange for a 40% profits, loss, and capital interest in the PD Partnership. Dave contributed land with an $8,000 basis and...

Compare the limitations of the liability of a warehouse and of a hotelkeeper

What types of issues lend themselves to international solutions through international law?

Steve Holmes and his son Mike were partners in a construction business. Steve also owned a ranch, which he contributed to the partnership, even though Steve was still listed as the owner of record....

Assume the same facts as in Problem 6-40 except, on January 2 of the current year, Gamma Corporation sells all property other than cash to Acquiring Corporation for FMV. Gamma pays off the accounts...

This chapter discussed a number of sources of American law. Which source of law takes priority in the following situations, and why? (a) A federal statute conflicts with the U.S. Constitution. (b) A...

Washoe Medical Center, Inc., admitted Shirley Swisher for the treatment of a fractured pelvis. During her stay, Swisher suffered a fatal fall from her hospital bed. Gerald Parodi, the administrator...

Fedun rented a building to Gomer, who did business under the name of Mikes Cafe. Later, Gomer was about to sell the business to Brown and requested Fedun to release him from his liability under the...

THE LEGAL ENVIRONMENT DIMENSION How could Access Organics have obtained a noncompete agreement from Hernandez that would have been enforced? THE ETHICAL DIMENSION Would an economic recession and...

Colleen, Rosemary, and Suzanne own a software development firm. Colleen owns 45% of the business, Rosemary 30%, and Suzanne 25%. The net operating income from the business is $220,000. Assume Suzanne...

Cummings, Okawa, and Taft are recent college graduates who want to form a corporation to manufacture and sell personal computers. Peterson tells them he will set in motion the formation of their...

ABC Company has instituted good internal controls and has never, until last month, had a problem with fraud. But, several weeks ago, someone with access to keys entered the controllers office and...

Sync Computers, Inc., makes computer-related products under the brand name Sync, which the company registers as a trademark. Without Syncs permission, E-Product Corp. embeds the Sync mark in...

Norma, who uses the cash method of accounting, lives in a state that imposes an income tax. In April 2014, she files her state income tax return for 2013 and pays an additional $1,000 in state income...

Martha owns 500 shares of Columbus corporation common stock at the beginning of the year with a basis of $82,500. During the year, Columbus declares and pays a 10% no taxable stock dividend. What is...

John Doe purchased a bottle of Bleach-All, a well-known brand, from Roes combination service station and grocery store. When John used the Bleach-All, his clothes deteriorated due to an error in...

Riffe, while serving as an officer of Wilshire Oil Company, received a secret commission for work he did on behalf of a competing corporation. Can Wilshire Oil recover these secret profits and, in...

Discuss fully whether either of the following actions would constitute a violation of Title VII of the 1964 Civil Rights Act, as amended: (a) Tennington, Inc., is a consulting firm and has ten...

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the...

Jim has been a faithful employee of Daddy's Denture, Inc. (DD) for four years. He has held various positions where he handles receipts, credit memos, and other accounting records. Along with recently...

Houston repeatedly promised his daughter, Allyson, that he would pay one-half of the costs of Allyson attending a private, historically African-American, college or university. Relying on this...

Regarding the formula for the Federal gift tax (see Concept Summary 18.1 in the text), comment on the following observations. a. A credit is allowed for the gift taxes actually paid on prior gifts....

John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In 2014, John worked as a computer technician at a local university earning a salary of $52,000, and...

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a...

Langley Brothers, Inc., a corporation incorporated and doing business in Kansas, decides to sell common stock worth $1 million to the public. The stock will be sold only within the state of Kansas....

Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of the stock (and Rose's assets) is about six times Vance's adjusted basis for the stock. He is negotiating with an...

Using the facts of Problem 14, determine the 2015 end-of-year balance in Prances deferred tax asset and deferred tax liability balance sheet accounts. In problem Prance, Inc., earns pretax book net...

Before her death in 2009, Lucy entered into the following transactions. a. In 2000, Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account,...

Dawn, a single, cash-method taxpayer, paid the following taxes in 2015: Dawns employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for FICA from her 2015...

Yong received a 40% general partnership interest in the XYZ Partnership in each of the independent situations below. In each situation, assume the general partners share the economic risk of loss...

Dad gives Son a 20% capital and profits interest in the Family Partnership. Dad holds a 70% interest, and Fred, an unrelated individual, holds a 10% interest. Dad and Fred work in the partnership,...

Simone Cherniak has just completed the second year of operating her veterinary clinic. You have been retained by Cherniak for tax assistance and advice. At a recent meeting, you gathered information...

Jackson invested $190,000 in a passive activity five years ago. On January 1, 2014, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000...

Suppose a firm faces a current tax rate of 35% but expects this rate to fall to 20% in the future. Employees on average face a current marginal tax rate of 31% but expect this rate to fall to 20%...

Jennifer Homan took her cell phone to a store owned by R&K Trading, Inc., for repairs. Later, Hoffman filed a suit in a New York state court against R&K, Verizon Wireless, Inc., and others. Homan...

Red win Wilchcombe is a musician and music producer. In 2002, Wilchcombe met Jonathan Smith, known as Lil Jon, a member of Lil Jon & The East Side Boyz (LJESB). Lil Jon and LJESB are under contract...

1. What are the conflicting public policy concerns in this case? 2. Why would Mattison sue Johnston for interference rather than suing Drowne for breach? Mattison owned a beauty salon and hired...

Teal, Inc., a foreign corporation, pays a dividend to its shareholders on November 30. Red, Inc., a U.S. corporation and 7% shareholder in Teal, receives a dividend of 10,000K (a foreign currency)....

In each of the following cases involving travel expenses, indicate how each item is reported on the taxpayers tax return. Include any limitations that might affect its deductibility. a. Marilyn lives...

Fred Lane, who sells boats, motors, and trailers, sold a boat, motor, and trailer to John Willis in exchange for a check for $6,285.00. The check was not honored when Lane attempted to use the funds....

Discuss the standard of care required from the bailee for the bailed property in the following situations, and determine whether the bailee breached that duty. (a) Benedetto borrows Toms lawn mower...

Barry Engel was president of Gel Spice Company, which imported, processed, and packaged spices. As president, he was responsible for the purchasing and storing of spices in the companys warehouse in...

Bob was waiting at the crosswalk for the light to turn green. As he stood there, a car that was stopped in the road next to him suddenly exploded, and Bob was injured by the blast. A defect in the...

Cynthia Stafford worked as an administrative professional at Gerber & Gerber, P.C. (Professional Corporation), a law firm, for more than two years. During that time, she stole ten checks payable to...

WHAT IF THE FACTS WERE DIFFERENT? Suppose that after the decision in this case, a JPL employee refuses to cooperate in a NACI background check. What would be the most likely consequences? THE LEGAL...

The BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the tax year. The partnership reported a loss for the year, and Brad's share of the loss is $10,000. Brad has a...

Susan, Steve, and Sandy own 15%, 35%, and 50%, respectively, in the SSS Partnership. Susan sells securities for their $40,000 FMV to the partnership. What are the tax implications of the following...

Steve wishes to pass his business on to his children, Tracy and Vicki, and gives each daughter a 20% partnership interest to begin getting them involved. Steve retains the remaining 60% interest....

You have just received a report suggesting that a chemical your company uses in its manufacturing process is very dangerous. You have not read the report, but you are generally aware of its contents....

Bain ordered from Marcum a carload of lumber, which he intended to use in the construction of small boats for the U.S. Navy pursuant to contract. The order specified that the lumber was to be free...

Why will cyber crime always be a worldwide problem? Explain. In the world of identity theft, the Russians are out in front. The best-known young Russian techie uses the name A-Z. He created the...

An appraiser valued a subsidiary of Signal Co. at between $230 million and $260 million. Six months later, Burmah Oil offered to buy the subsidiary at $480 million, giving Signal only three days to...