1. Contracts, General Rules

Take a look at the elements of an enforceable contract. Pick one, explain how it works, and describe what you think the purpose of that element is.

2. Contracts, Special Situations

Describe a situation in a business where you think you might see one of the special situations in Chapter 2.2. How would you avoid problems that might be created by one of those special situations?

3. Creditors' Rights

Identify a type of business, and describe the kinds security interests it might be giving in order to enable it to borrow money. What steps would the lender need to take to protect itself?

4. Bankruptcy

When you read through the different rules applicable to bankruptcy, you should get a sense of some of the values decisions built into them. For instance, a certain amount of home equity is exempt because we dont want people to be homeless. And support claims by a spouse or children get top priority for payment, because we want to protect these individuals and keep them from becoming public charges. Find some rule discussed in Section 2.4 Bankruptcy that reflects a policy decision, a public goal, and explain how it furthers that goal.