Question
Abel owns and operates an appliance store which sells and fixes appliances. Able employs 27 people full-time in this business. On April 1, Abel sells
Abel owns and operates an appliance store which sells and fixes appliances. Able employs 27 people full-time in this business. On April 1, Abel sells a refrigerator to Betty for use in her retail sweater shop. Abel finances the purchase of the refrigerator for Betty by loaning her the full $500 of the purchase price for the refrigerator. At the time of the sale, Betty signs a valid security agreement, which gives the refrigerator as collateral for the loan, and Betty promises to pay Abel $100 per month for five months. Betty takes possession of the refrigerator on that same day. On April 2, Charlie drops off a refrigerator to be fixed by Abel's business. The sales clerk tells Charlie that the refrigerator will be ready next week. On April 3, Daniel, a person of color who is wheelchair bound, enters the store and states that he wants to apply for the job as a sales clerk at Abel's store. Abel had advertised for the position which stated in part that the applicant had to have a working knowledge of appliances and had to be able to make a "professional appearance" to potential customers. Abel admits that Daniel has all the relevant credentials. Abel, who is unconcerned about Daniel's race, is concerned, however, that Daniel's physical disability will scare away potential customers who are "uncomfortable" in dealing with handicapped individuals. Furthermore, minor changes would have to be made to the store in order to make all portions of the sales area accessible to Daniel. Therefore, Abel informs Daniel that Daniel is not qualified for the job since Daniel cannot physically get to all areas of the showroom floor, and, therefore, cannot make a "professional appearance" to potential customers. On April 4, Abel enters into an agreement with Sam to repair a gas cooking stove for his apartment. Sam pays the repair price of $400 in cash in advance and Abel fixes the stove. On July 5, Abel receive a summons and complaint from Daniel claiming that Abel has discriminated against Daniel in refusing to hire Daniel for the sales clerk position. Abel also receives notice from the Bankruptcy Court that on April 4, Betty filed for bankruptcy pursuant to Chapter 7 of the federal bankruptcy code. Charlie shows up to reclaim Charlie's refrigerator, whereupon it is discovered that a sales clerk had mistakenly sold Charlie's refrigerator to Alice. At the end of the day Sam shows up and demands the return of his money showing Abel his drivers license which shows that he will not turn 18 until next month. Advise Abel as best you can regarding the following questions. 1. Discuss whether Abel will be able to get the refrigerator back from Betty in a bankruptcy proceeding? 2. Discuss whether Abel have to replace Charlie's refrigerator, or if Charlie can require Alice to return the refrigerator to Charlie? 3. Discuss whether Abel violated any federal laws in refusing to hire Daniel? 4. Discuss whether Abel will have to return the full $400 repair price of the stove to Sam? Cite to UCC Article 2 Code Sections if appropriate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started