Tracer Corp, an exploration company, wishes to develop a silver mine on a piece of land known as the Harris tract. It lacked the capital to do so on its own, so it entered into negotiations with Big Tree Mining Ltd
for a joint venture on the project. The negotiations collapsed. Big Tree, believing Tracer's information that there was a rich silver vein on the Harris tract and knowing that Tracer did not yet own it, bought the land itself and subsequently developed the mine, making a huge profit. Which of the following is true?
A) Tracer has no remedy unless it establishes that Big Tree owed it a fiduciary duty.
B) Tracer has no remedy unless it establishes that Big Tree acquired the Harris tract pursuant to a constructive trust.
C) Big Tree is liable to Tracer for breach of confidence
D) Tracer has no remedy unless it establishes that Big Tree committed a breach of contract.
E) Any one of A, B, or D
C
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Which of the following is an example of a contract that would be governed by Article 2 of the Uniform Commercial Code (UCC)?
A) Bill agrees to sell his farm to Sam for $200,000. B) Chantelle agrees to work for Jenna as her personal secretary for $50 an hour for the next year. C) Dwayne buys a used car from Tom's Autos for $7,000. D) Carlo leases a car for a year from EZ Cars for $2,000 per month.
Under the indirect method of preparing the statement of cash flows, a gain on the sale of equipment is:
A) subtracted from net income in the operating activities section. B) added to net income in the operating activities section. C) subtracted from the book value of the equipment in the financing activities section. D) ignored since this transaction does not affect cash.