Refer to Fact Pattern 18-1

question 17

Multiple Choice

Refer to Fact Pattern 18-1.Holly,a professional driver,buys an Excel from Fine to drive in a Grand Prix race.Holly's Excel is

• A)a consumer good.
• B)an accession.
• C)equipment.
• D)inventory.

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Definitions:

De Jure Corporation

A corporation that has fully complied with all legal requirements for incorporation and therefore enjoys all the powers and rights granted to corporations under the law.

De Facto Corporation

A company that operates as if it were legally incorporated, even though it has not completed the necessary legal formalities and documentation.

Corporation By Estoppel

Corporation by estoppel is a legal doctrine preventing someone from denying a business's corporate status when they have treated it as a corporation in previous transactions.

Novation

In a contract, the substitution of a third party for one of the original parties. The duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.