Chapter 16 Third Parties 1. Janet Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000. The assets of the business included all of the washers and dryers. The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under a monthly installment contract. Katz agreed to make the installment payments on the new dryers as they came due. After Katz failed to make an installment payment when it was due, Dryer Company sued Jones. Jones claimed she no longer was liable. (5 points) A. Circle the name of the party who will win this case: Dryer Company or Jones B. Explain why you chose this answer. Chapter 21 Ownership and Risk 2. Frank is a jeweler who both sells and repairs jewelry. An elderly woman brought in a red piece of jewelry to be repaired and left it with Frank. Frank called the woman with a question about the piece of jewelry. In that conversation they agreed that Frank would go to the womans home to talk about the red piece of jewelry. While at her home, Frank stole a blue piece of jewelry from her dresser. The following week Franks employees sold both the red piece of jewelry and the blue piece of jewelry to Derek, a random customer shopping for Christmas presents. A. Can the elderly woman get her Red jewelry back from Derek? Explain why or why not (5 points) B. Can the elderly woman get her Blue jewelry back from Derek? Explain why or why not (5 points) 3 . Henry, a sporting goods retailer in Ankeny, sent an email to Dons Ski Equipment & More (DSEM) ordering 100 of a specific kind of ski pole. On October 10, DSEM shipped the ski poles via a common carrier from its distribution center on the western side of Colorado. After traveling for approximately one hour, the truck made a wrong turn and fell off the side of a mountain, damaging all of the ski poles. Henry refuses to pay for the ski poles, arguing that the ski poles still belonged to DSEM. DSEM argues that the ski poles belonged to Henry as soon as the truck left its distribution center, and therefore Henry had the risk of loss for the ski poles at the time of the accident. Circle the name of the party that had the risk of loss for the ski poles at the time of the accident: (Henry or DSEM) Explain why you chose this answer (5 points) Chapter 23 Performance and Remedies 4. Dorothy Hayes orders 100 pink plastic flamingos (for a total contract price of $500) from Tropical Novelties of Tampa, Inc. The contract specifies delivery of the flamingos to Dorothys home in Poughkeepsie, New York on or before September 1. On the evening of September 1, Amalgamated Package Service (A. P. S.) delivers five large boxes to Dorothys home. With much anticipation, Dorothy tears open the boxes, only to find 50 pink plastic flamingos, 50 short of the specified contract quantity. Disappointed that Tropical Novelties did not satisfy its part of the bargain, Dorothy decides to terminate the contract. She calls Tropical Novelties, speaks with a sales representative, notifies the seller that she is canceling the contract due to its non-performance, and informs the seller that she will be returning the 50 flamingos by package delivery service the following day. Tropical Novelties demands that she keep the 50 flamingos, notifies her that they will ship the remaining 50 the following day, and assures her that she will be held responsible for paying the $500 contract price. Who wins? Why? (5 points) Business Law and The Legal Environment, 6th edition (Beatty)