Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule:
a. Juan cannot abandon the agency relationship he established with Marie
b. Marie may not be fired because she and Juan had a contract of employment c. Juan should pay Marie damages for reducing her income
d. Juan cannot abandon the agency relationship he established with Marie and Juan should pay Marie damages for reducing her income
e. none of the other choices
Question 2
Carr Corp sells VCRs and videotapes to the public. Carr sold and delivered a VCR to Sutter on credit. Sutter executed and delivered to Carr a promissory note for the purchase price and a security agreement covering the VCR. Sutter purchased the VCR for personal use. Carr did not file a financing statement. Is Carr's security interest perfected?
a. No, because the VCR was a consumer good.
b. No, because Carr failed to file a financing statement.
c. Yes, because Carr retained ownership of the VCR.
d. Yes, because it was perfected at the time of attachment.
Field Garlic
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