Questions and Answers of Business Its Legal Ethical

Forged Signatures. Cynthia Stafford worked as an administrative professional at Gerber & Gerber, P.C. (pro fessional corporation), a law firm, for more than two years. During that time, she stole ten
Forged Signatures. Visiting Nurses Association of Telfair County, Inc. (VNA), maintained a checking account at Security State Bank in Valdosta, Georgia.Wanda Williamson,a VNA clerk,was responsible
Yannuzzi has a checking account at Texas Bank.She frequently uses her access card to obtain cash from the bank’s automated teller machines. She always with draws $50 when she makes a withdrawal,but
On January 5,Brian drafts a check for $3,000 drawn on Southern Marine Bank and payable to his assistant, Shanta. Brian puts last year’s date on the check by mis take.On January 7,before Shanta has
QUESTION WITH SAMPLE ANSWER Gary goes grocery shopping and carelessly leaves his checkbook in his shopping cart.His checkbook,with two blank checks remaining,is stolen by Dolores. On May 5, Dolores
Checks are usually three-party instruments. On what type of check, how ever, does a bank serve as both the drawer and the drawee? What type of check does a bank agree in advance to accept when the
A QUESTION OF ETHICS Clarence Morgan, Jr., owned Easy Way Automotive, a car dealership in D’Lo, Mississippi. Easy Way sold a truck to Loyd Barnard, who signed a note for the amount of the price
Accommodation Parties. Donald Goosic,a building contractor in Nebraska, did business as “Homestead”builders.To construct a house on “spec” (without a pre construction buyer), Donald obtained
CASE PROBLEM WITH SAMPLE ANSWER Ameripay, LLC, is a payroll services company that, among other things,issues payroll checks to the employees of its clients. In July 2002, Nu Tribe Radio Networks,
Defenses. On September 13,1979,Barbara Shearer and Barbara Couvion signed a note for $22,500, with interest at 11 percent,payable in monthly installments of$232.25 to Edgar House and Paul Cook.House
Agents’ Signatures. Robert Helmer and Percy Helmer,Jr.,were authorized signatories on the corporate checking account of Event Marketing, Inc.The Helmers signed a check drawn on Event Marketing’s
Unauthorized Indorsements. Telemedia Publica tions,Inc.,publishes Cablecast magazine,a weekly guide to the listings of the cable television programming in Baton Rouge, Louisiana. Cablecast hired
Gil makes out a $900 negotiable promissory note payable to Ben.By special indorsement,Ben transfers the note for value to Jess. By blank indorsement, Jess trans fers the note for value to Pam. By
Williams purchased a used car from Stein for$1,000.Williams paid for the car with a check (written in pencil) payable to Stein for $1,000.Stein,through careful erasures and alterations, changed the
QUESTION WITH SAMPLE ANSWER Niles sold Kennedy a small motorboat for$1,500, maintaining to Kennedy that the boat was in excellent condition. Kennedy gave Niles a check for $1,500, which Niles
Waldo makes out a negotiable promissory note payable to the order of Grace.Grace indorses the note by writing on it “Without recourse, Grace”and transfers the note for value to Adam.Adam,in need
What are the exceptions to the rule that a bank will be liable for paying a check over an unauthorized indorsement?presentment warranty 490 principal 485 transfer warranty 488 universal defense 492
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 25.”Click on “Video Questions” and view the video titled Negotiability & Transferability:
A QUESTION OF ETHICS As an assistant comptroller for Interior Crafts, Inc., in Chicago, Illinois, Todd Leparski was authorized to receive checks from Interior’s customers and deposit the checks
Holder in Due Course. Robert Triffin bought a num ber of dishonored checks from McCall’s Liquor Corp., Community Check Cashing II, LLC (CCC), and other licensed check-cashing businesses in New
Alternative or Joint Payees. Hartford Mutual Insurance Co. issued a check for $60,150 payable to“Andrew Michael Bogdan,Jr.,Crystal Bogdan,Oceanmark Bank FSB, Goodman-Gable-Gould Company.” The
CASE PROBLEM WITH SAMPLE ANSWER In February 2001, New York Linen Co., a party rental company,agreed to buy 550 chairs from Elite Products.On delivery of the chairs,New York Linen issued a check
Transfer of Instruments. In July 1988,Chester Crow executed a promissory note payable “to the order of THE FIRST NATIONAL BANK OF SHREVEPORT or BEARER”in the amount of $21,578.42 at an interest
Bertram writes a check for $200 payable to “cash.”He puts the check in his pocket and drives to the bank to cash the check. As he gets out of his car in the bank’s parking lot,the check slips
Through negotiation,Emilio has received from dis honest payees two checks with the following histories:(a) The drawer issued a check to the payee for $9.The payee cleverly altered the numeral on the
QUESTION WITH SAMPLE ANSWER Celine issues a ninety-day negotiable promis sory note payable to the order of Hayden.The amount of the note is left blank, pending a determina tion of the amount that
A check drawn by Cullen for $500 is made payable to the order of Jordan and issued to Jordan. Jordan owes his landlord$500 in rent and transfers the check to his landlord with the following
VIDEO QUESTION Go to this text’s Web site at www.cengage/com/blaw/jentz and select “Chapter 24.”Click 464 on “Video Questions”and view the video titled Negotiable Instruments. Then answer
A QUESTION OF ETHICS In November 2000,Monay Jones signed a prom issory note in favor of a mortgage company in the amount of $261,250, using the deed to her home in Denver, Colorado, as collateral.
Negotiability. In September 2001, Cory Babcock and Honest Air Conditioning & Heating, Inc., bought a new 2001 Chevrolet Corvette from Cox Chevrolet in Sarasota, Florida.Their retail installment sales
CASE PROBLEM WITH SAMPLE ANSWER In July 1981,Southeast Bank in Miami,Florida, issued five cashier’s checks, totaling $450,000, to five payees, including Roberto Sanchez. Two months later, in
Negotiability. In October 1996, Robert Hildebrandt contracted with Harvey and Nancy Anderson to find a ten ant for the Andersons’ used-car lot.The Andersons agreed to pay Hildebrandt “a
Negotiability. In October 1998, Somerset Valley Bank notified Alfred Hauser,president of Hauser Co.,that the bank had begun to receive what appeared to be Hauser Co. payroll checks. None of the
Adam’s checks are imprinted with the words “Pay to the order of”followed by a blank.Adam fills in an amount on one of the checks and signs it, but he does not write anything in the blank
A college student, Austin Keynes, wished to pur chase a new entertainment system from Friedman Electronics,Inc.Because Keynes did not have the cash to pay for the entertainment system, he offered to
QUESTION WITH SAMPLE ANSWER Juan Sanchez writes the following note on the back of an envelope:“I,Juan Sanchez,promise to pay Kathy Martin or bearer $500 on demand.”Is this a negotiable
Sabrina Runyan writes the following note on a sheet of paper: “I, the under signed, do hereby acknowledge that I owe Leo Woo one thousand dollars,with interest,payable out of the proceeds of the
Generally, the courts determine what constitutes“reasonable” behavior in disputes between contract parties over this issue. Should the UCC be more specific in defining what will be deemed
Review the UCC provisions that apply to the topics discussed in Chapters 20 through 23.Discuss fully how various UCC provisions, excluding the provisions discussed above, reflect social values and
VIDEO QUESTION Go to this text’s Web site at www.cengage/com/blaw/jentz and select “Chapter 23.” Click on “Video Questions” and view the video titled Warranties. Then answer the following
A QUESTION OF ETHICS Susan Calles lived with her four daughters, Amanda,age 11,Victoria,age 5,and Jenna and Jillian, age 3. In March 1998, Calles bought an Aim N Flame utility lighter, which she
Implied Warranties. Peter and Tanya Rothing oper ate Diamond R Stables near Belgrade, Montana, where they bred, trained, and sold horses. Arnold Kallestad owns a ranch in Gallatin County, Montana,
Product Liability. Bret D’Auguste was an experi enced skier when he rented equipment to ski at Hunter Mountain Ski Bowl,Inc.,owned by Shanty Hollow Corp., in New York.The adjustable
Express Warranties. Videotape is recorded mag netically. The magnetic particles that constitute the recorded image are bound to the tape’s polyester base.The binder that holds the particles to the
CASE PROBLEM WITH SAMPLE ANSWER Mary Jane Boerner began smoking in 1945 at the age of fifteen.For a short time,she smoked Lucky Strikes (a brand of cigarettes) before switching to the Pall Mall
Product Liability. In January 1999, John Clark of Clarksdale, Mississippi, bought a paintball gun. Clark practiced with the gun and knew how to screw in the carbon dioxide cartridge, pump the gun,
Implied Warranties. Shalom Malul contracted with Capital Cabinets,Inc.,in August 1999 for new kitchen cab inets made by Holiday Kitchens.The price was $10,900.On Capital’s recommendation,Malul
Baxter manufactures electric hair dryers.Julie pur chases a Baxter dryer from her local Ace Drugstore.Cox, a friend and guest in Julie’s home, has taken a shower and wants to dry her hair. Julie
QUESTION WITH SAMPLE ANSWER Colt manufactures a new pistol. The firing of the pistol depends on an enclosed high pressure device.The pistol has been thoroughly tested in two laboratories in the
Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn.This will require lifting the equip ment thirty feet up into a hayloft.Moon goes to Davidson Hardware and tells
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 22.”Click on “Video Questions” and view the video titled International: Letter of Credit. Then
A QUESTION OF ETHICS Scotwood Industries,Inc.,sells calcium chloride flake for use in ice melt products. Between July and September 2004, Scotwood delivered thirty-seven shipments of flake to Frank
Additional Provisions Affecting Remedies. Nomo Agroindustrial Sa De CV is a farm company based in Mexico that grows tomatoes, cucumbers,and other veg etables to sell in the United States. In the
Remedies of the Buyer. L.V.R.V., Inc., sells recre ational vehicles (RVs) in Las Vegas,Nevada,as Wheeler’s Las Vegas RV.In September 1997,Wheeler’s sold a Santara RV made by Coachmen Recreational
Perfect Tender. Advanced Polymer Sciences, Inc.(APS),based in Ohio,makes polymers and resins for use as protective coatings in industrial applications.APS also owns the technology for equipment used
CASE PROBLEM WITH SAMPLE ANSWER Eaton Corp. bought four air-conditioning units from Trane Co., an operating division of American Standard, Inc., in 1998. The contract stated in part, “NEITHER PARTY
Acceptance. In April 1996, Excalibur Oil Group, Inc., applied for credit and opened an account with Standard Distributors, Inc., to obtain snack foods and other items for Excalibur’s convenience
Remedies of the Buyer or Lessee. Mississippi Chemical Corp. (MCC) produces ammonia at its fertilizer plant in Yazoo City, Mississippi.The production of ammonia involves the compression of gas in
Lehor collects antique cars. He contracts to pur chase spare parts for a 1938 engine from Beem. These parts are not made anymore and are scarce.To obtain the contract with Beem, Lehor agrees to pay
QUESTION WITH SAMPLE ANSWER Topken has contracted to sell Lorwin five hun dred washing machines of a certain model at list price. Topken is to ship the goods on or before December 1. Topken produces
Ames contracts to ship to Curley one hundred model Z television sets.The terms of delivery are F.O.B. Ames’s city, by Green Truck Lines,with delivery on or before April 30.On April 15, Ames
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 21.”Click on “Video Questions” and view the video titled Risk of Loss.Then answer the following
A QUESTION OF ETHICS Kenneth West agreed to sell his car, a 1975 Corvette,to a man representing himself as Robert Wilson.In exchange for a cashier’s check,West signed over the Corvette’s title to
Shipment and Destination Contracts. In 2003,Karen Pearson and Steve and Tara Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartini’s RV Sales in Grass Valley, California. On
CASE PROBLEM WITH SAMPLE ANSWER William Bisby gave an all-terrain vehicle (ATV)to Del City Cycle in Enid, Oklahoma,to sell on his behalf.Joseph Maddox bought the ATV but paid for it with a check
Conditional Sales. Corvette Collection of Boston, Inc. (CCB), was a used-Corvette dealership located(despite its name) in Pompano Beach, Florida. In addi tion to selling used Corvettes, CCB serviced
Risk of Loss. H.S.A. II, Inc., made parts for motor vehicles. Under an agreement with Ford Motor Co.,Ford provided steel to H.S.A. to make Ford parts. Ford’s pur chase orders for the parts
Zeke,who sells lawn mowers,tells Stasio, a regular customer, about a special promotional campaign. On insolvent 389 insurable interest 396 sale on approval 395 sale or return 395 shipment contract
QUESTION WITH SAMPLE ANSWER On May 1, Sikora goes into Carson’s retail clothing store to purchase a suit.Sikora finds a suit he likes for $190 and buys it. The suit needs alter ations. Sikora is to
Mackey orders from Pride one thou sand cases of Greenie brand peas from lot A at list price to be shipped F.O.B.Pride’s city via Fast Freight Lines.Pride receives the order and imme diately sends
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 20.”Click on “Video Questions”and view the video titled Sales and Lease Contracts: Price as a
A QUESTION OF ETHICS Daniel Fox owned Fox and Lamberth Enterprises,Inc.,a kitchen and bath remodeling business,in Dayton,Ohio.Fox leased a building from Carl and Bellulah Hussong. Craftsmen Home
Parol Evidence. Clear Lakes Trout Co.operates a fish hatchery in Idaho. Rodney and Carla Griffith are trout growers. Clear Lakes agreed to sell “small trout” to the Griffiths,who agreed to sell
Offer. In 1998, Johnson Controls, Inc. (JCI), began buying auto parts from Q.C. Onics Ventures, LP.For each part,JCI would inform Onics of its need and ask the price.Onics would analyze the
CASE PROBLEM WITH SAMPLE ANSWER Propulsion Technologies,Inc.,a Louisiana firm doing business as (dba) PowerTech Marine Propellers, markets small steel boat propellers that are made by a unique
Statute of Frauds. Quality Pork International is a Nebraska firm that makes and sells custom pork prod ucts. Rupari Food Services, Inc., buys and sells food products from and to retail operations and
Goods Associated with Real Estate. Heatway Radiant Floors and Snowmelting Corp. sells parts for underground radiant heating systems.These systems cir culate warm fluid under indoor flooring as an
QUESTION WITH SAMPLE ANSWER Flint,a retail seller of television sets,orders one hundred Color-X sets from manufacturer Martin.The order specifies the price and that the televi sion sets are to be
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 19.”Click on “Video Questions” and view the video titled E Contracts: Agreeing Online. Then
A QUESTION OF ETHICS 353(a) Should the court enforce the arbitration clause in this case? If you were the judge,how would you rule on this issue?(b) In your opinion, do shrink-wrap, click-on, and
Online Acceptances. Internet Archive (IA) is devoted to preserving a record of resources on the Internet for future generations. IA uses the “Wayback Machine” to automatically browse Web sites
Shrink-Wrap Agreements and Browse-Wrap Terms.Mary DeFontes bought a computer and a service con tract from Dell Computers Corp. DeFontes was charged$950.51,of which $13.51 was identified on the
Click-On Agreements. America Online, Inc. (AOL), provided e-mail service to Walter Hughes and other members under a click-on agreement titled “Terms of Service.” This agreement consisted of three
Shrink-Wrap Agreements. 1-A Equipment Co.signed a sales order to lease Accware 10 User NT software,which is made and marketed by ICode,Inc.Just above the signa ture line, the order stated:“Thank
Browse-Wrap Terms. Ticketmaster Corp. operates a Web site that allows customers to buy tickets to concerts, ball games,and other events.On the site’s home page are instructions and an index to
Bob,a sales representative for Central Computer Co., occasionally uses the Internet to obtain information about his customers and to look for new sales leads.While visiting the Web site of Marketing
QUESTION WITH SAMPLE ANSWER Anne is a reporter for Daily Business Journal, a print publication consulted by investors and other businesspersons.She often uses the Internet to con duct research for
Paul is a financial analyst for King Investments,Inc.,a brokerage firm.He uses the Internet to investigate the background and activities of companies that might be good invest ments for King’s
VIDEO QUESTION Go to this text’s Web site at www.cengage.com/blaw/jentz and select “Chapter 18.”Click on “Video Questions”and view the video titled Midnight Run. Then answer the following
A QUESTION OF ETHICS In 2004, Tamara Cohen, a real estate broker, began showing property in Manhattan to Steven Galistinos, who represented comedian Jerry Seinfeld and his wife, Jessica. According to
Remedies. On July 7, 2000, Frances Morelli agreed to sell to Judith Bucklin a house at 126 Lakedell Drive in Warwick, Rhode Island, for $77,000. Bucklin made a deposit on the house.The closing at
Waiver of Breach. In May 1998, RDP Royal Palm Hotel, L.P., contracted with Clark Construction Group, Inc., to build the Royal Palms Crowne Plaza Resort in Miami Beach,Florida.The deadline for
CASE PROBLEM WITH SAMPLE ANSWER Tyna Ek met Russell Peterson in Seattle, Washington. Peterson persuaded Ek to buy a boat that he had once owned,the O’Hana Kai,which was in Juneau, Alaska. Ek paid
Liquidated Damages versus Penalties. Every home owner in the Putnam County, Indiana, subdivision of Stardust Hills must be a member of the Stardust Hills Owners Association, Inc., and must pay annual
Mitigation of Damages. William West, an engineer, worked for Bechtel Corp., an organization of about 150 engineering and construction companies, which is headquartered in San Francisco,California,and
Ken owns and operates a famous candy store and makes most of the candy sold in the store. Business is particularly heavy during the Christmas season.Ken con tracts with Sweet,Inc.,to purchase ten
QUESTION WITH SAMPLE ANSWER In which of the following situations would spe cific performance be an appropriate remedy?Discuss fully.(a) Thompson contracts to sell her house and lot to
Cohen contracts to sell his house and lot to Windsor for $100,000.The terms of the contract call for Windsor to pay 10 per cent of the purchase price as a deposit toward the pur chase price, or a
A QUESTION OF ETHICS King County,Washington, hired Frank Coluccio Construction Co.(FCCC) to act as general con tractor for a public works project involving the construc tion of a small utility tunnel
Material Breach. Kermit Johnson formed FB&I Building Products, Inc., in Watertown, South Dakota, to sell building materials. In December 1998, FB&I con tracted with Superior Truss & Components in

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