Question
Abe is the founder and sole owner of Union Resources, Inc. (UR), a Texas oil drilling company. Abe hires Grant to digitize UR's payroll. The
Abe is the founder and sole owner of Union Resources, Inc. (UR), a Texas oil drilling company. Abe hires Grant to digitize UR's payroll. The job will take about one week. Even before Grant is to begin work on the project Abe plans to fly to San Francisco on a one-month business trip. Abe asks Grant how much Grant will charge for the services he will provide to UR. Grant replies, "Until I get into the project, I'm not sure how much work I will have to perform to digitize your payroll." Abe responds, "In that case, I'll write you a signed, blank UR check. You can fill in the sum payable when you complete the work." Abe provides Grant with a signed, blank UR check, drawn on UR's account at Gettysburg National Bank (GB). The next day he flies on United Airlines from Houston, Texas to San Francisco, California. Grant finishes the job on one week. The fair charge for the job is $40,000. Grant completes the check in the sum of $500,000. He indorses the check and sells it to Ulysses for $490,000. Ulysses does not know and has no way of knowing that Grant completed the check with a fraudulent amount. GB dishonors the check on instructions from Abe.
(a) What is the maximum amount, if anything, that Abe owes to Ulysses on the UR check? Simply provide the amount, if any, in dollars. Do not explain.
(b) Suppose that Grant gave the UR check to Ulysses free of charge. What is the maximum amount, if anything, that Abe owes to Ulysses? Simply provide the amount, if any, in dollars. Do not explain.
2. Jack worked for Crypto World, a platform that buys and sells cryptocurrency. Because of a slowdown in the cryptocurrency business, Shawn, Jack's boss. terminated Jack's employment. Jack was so angry he punched Shawn in the face, causing Shawn $3,000 in medical bills. Shortly after this incident, on the way home, Jack negligently caused an auto accident, hitting Sarah's RV and causing Sarah a $15,000 loss. Having lost his job, Jack could not meet his expenses. He filed a petition for bankruptcy in federal court. Of the two potential claims mentioned, Shawn's and Sarah's, which, if either or both, is likely to be discharged in bankruptcy? Simply mention the name of the person or persons whose claim or claims is likely to be discharged. Do not explain.
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