Supreme Radio, Inc., issued to Southern New England Distributing Corporation two notes worth $1,900. The two notes

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Supreme Radio, Inc., issued to Southern New England Distributing Corporation two notes worth $1,900. The two notes and others, all of a total face value of about $15,000, were transferred to Korzenik, an attorney, by his client Southern ‘‘as a retainer for services to be performed’’ by Korzenik. Although Korzenik was unaware of the fact, Southern had obtained the notes by fraud. Southern retained Korzenik on October 25 in connection with certain antitrust litigation, and the notes were transferred on October 31. The value of the services performed by Korzenik during that time is unclear. Korzenik brought this action against Supreme Radio to recover $1,900 on the notes. Will Korzenik be able to collect the funds? Explain.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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