Joe, after years of being a lawyer decided to sell his law firm and start a new company, JT Crispy Cookie, Inc.His first order of business: purchase the necessary manufacturing equipment and supplies to start production of the new and improved "JT Crispy Cookie take and bake Chocolate Covered Mint Crispy Cookie Dough."

Joe called a number of jar manufacturers, before deciding to purchase a shipment of glass jars from Heidi's Glass Emporium.Heidi, of Heidi's Glass Emporium (referred to below as "HGE"), and Joe met at the HGE warehouse so that Joe could view some of the jars and bottles HGE had for sale.Joe made clear to Heidi that he needed jars for use with packaged food.Heidi showed Joe a selection of jars, and Joe selected jar that came in a 12-ounce and 16-ounce size.The two parties quickly agree to a price per unit, and Joe tells Heidi he would like to purchase 100,000 of each size of jar.Joe states that JT Crispy Cookie, Inc. needs the jars delivered, but can only take 5,000 jars at a time due to a lack of warehouse space.Heidi agrees to deliver the jars over multiple shipments for a shipping fee and a storage fee, both of which can be paid later, but the payment for the jars would have to be paid right then or HGE would not be able to ensure the jars would be available.Joe quickly agrees, and pulls out a check for the full amount of the jars, $20,000. (see image of the check below).The first truckload of jars was quickly loaded and dispatched to JT Crispy Cookie, Inc.

That night Sophia, the cleaning lady at the HGE warehouse, plugged her vacuum cleaner into the same socket as the office fan and the coffee maker...little did she know the electric is horribly out of date at the HGE warehouse, and this would cause a catastrophic fire!The entire warehouse and its contents burned to the ground, except for Sophia and her cup of coffee...she was, after all, on a break when the fire started.

Meanwhile, across town, Heidi decided to celebrate her successful day by purchasing the classic Dodge Viper her neighbor Jim had for sale for $20,000!They quickly struck a deal, but Heidi realized she did not have any cash.She offered to pay Jim with the check she received from Joe.Jim agreed, and Heidi proceeded to indorse the back of the JT Crispy Cookie, Inc. check she had received from Joe over to Jim.

The next day:

• Jim quickly took the check to his bank, which refused to honor the check; Jim called Heidi.
• Joe called Heidi to inform her that the first shipment of jars had arrived and Terri, his partner, upon inspecting the jars informed Joe that they were NOT the right kind of jars - they could not be used for food due to a high lead content in the glass. Joe quickly called Heidi; and
• Heidi informed Joe of the loss of the warehouse. Heidi also told Joe she would be able to get the same jars in about a week, and would be happy to give him the same deal.Joe was enraged and demanded his check back.

Words of an unkind nature were exchanged, between all of the parties, who promptly called their lawyers.

1)Does HGE owe JT Crispy Cookie, Inc. a refund for the first shipment since they cannot use the bottles for food products?

2) What about the rest of the bottles...is HGE or JT Crispy Cookie, Inc. harmed by the loss?

3)Why did Jim's bank not honor the check?

Joe's Check:Front

Date:December 1, 2016

PAY TO THE ORDER OF:Heidi's Glass Emporium, if I sell my law firm.

Twenty Thousand Dollars and No/100 $20,000.00

Memo:for bottlesJoe Doe

45554656546 4664656565 0151

Joe's Check:Back

Indorse Here:

Heidi Doe, President Heidi's Glass Emporium

Pay to the Order of Jim Smith

Jim Smith