Happy bought carpets from Carpet World. Carpet World had assured Happy that they would attend to the delivery and laying of the carpet. Carpet World delivered the carpet to Happy’s residence. They were to return next day and lay the carpet. When Carpet World returned next day to lay the carpet that were informed that the carpet was stolen. Did the risk and property in the carpet pass to Happy or remained with Carpet World.

Stan sold goods to Bill in good faith, believing him to be a principal. Bill in fact was acting as agent for Nancy and was within the scope of his authority. The goods were charged to Bill, and on his refusal to pay, Stan sued Bill for the purchase price. While this action was pending, Stan learned of Bill’s relationship with Nancy. Nevertheless, thirty days after learning of that relationship, Stan obtained judgment against Bill and had an execution issued that was never satisfied. Three months after rendition of the judgment, Stan sued Nancy for the purchase price of the goods. Is Nancy liable? Explain.

Thompson’s house was destroyed by fire and claims were filed with the insurance company.  The insurance company (insurer) hired Cannon to investigate the fire as it was suspicious about the cause.  Subsequently, the insurer denied the claims based on Cannon’s report.  Thompson sued the insurer and Cannon.  Thompson claimed to be a third party beneficiary of the Cannon-insurer contract.     Is Thompson correct?  If not, what type of beneficiary is he and why? ​

In janaruary, Prahbu purchased a new machine for use in the existing production line of his manufacturing business for $90,000. Assume that the machine is a unit of property and is not a material or supply. Prahbu pays $2,500 to install the machine, and after the machine is installed, he pays $1,300 to perform a critical test on the machine to ensure that it will operate in accordance with quality standards. On November 1, the critical test is complete and prahbu places the machine in service on the production line. On December 3, prahbu pays another $3,300 to perform periodic qaulity testing after the machine is placed in service. . How much will prahbu be required to capitalize as the cost of the machine.?

Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming “equipment and all after acquired equipment.” Berkeley later sells Jason Store a cash register, taking a security interest in the register, and (a) files nine days after Jason receives the register or (b) files twenty-five days after Jason receives the register. If Jason fails to pay both Joanna and Berkeley and they foreclose their security interests, who has priority on the cash register? Explain.

Amar Jain purchased a second hand car in December 2010, which was insured by New India Assurance by the previous owner. Jain did not inform the insurance company about the registration transfer or get the insurance policy transferred to his name. When Jain filed a claim on the car being stolen in March 2011, his claim was rejected on the grounds that the claim was not in his name.1) Explain whether insurance company rightly rejected the claim?2) Can Jain file a complaint if claim is rejected. If yes, where? What will be final decision?

Frankfurt delivers two refrigerators to the warehouse of Duisburg who then issues a negotiable receipt undertaking the delivery of the refrigerators to "Frankfurt or bearer." Frankfurt entrusted the receipt to Leipzig for safekeeping only. Leipzig negotiated it, however, to Stuttgart who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators?   a. Frankfurt, since he is the real owner of the refrigerators. b. Stuttgart, since he is a purchaser in good faith and for value. c. Leipzig, since T entrusted the receipt to him. d. Duisburg, since he has as a warehouseman a lien on the goods.

Hammer regularly took his car to be serviced at his local garage, Vanilla Ice Limited. On several occasions before handing his car over to the garage, VanillaIce always required Hammer to read and sign a contractual document which contained the following statement in big bold red type;“Vanilla Ice Ltd accepts no responsibility for any consequential loss or injury sustained as a result of any work carried out by the company, whether as a result of negligence or otherwise.”   On the most recent visit to the garage, Vanilla Ice was very busy when Hammer arrived and because of thatfact Hammer was not asked to sign the usual document. He was however, given a receipt for his car, which he accepted without reading. Vanilla Ice’s usual business terms were printed on the back of the receipt in red, including the saidcontractual term stated above.   On his way home after servicing, Hammer was severely injured when the car suddenly burst into flames. It subsequently emerged that the fire had been…

John and Sara ran a gift and flower shop selling wide range of items. The shop was located in a famous shopping mall. The owners of the company took a Fire Insurance policy on the shop in the name of the company. Johan signed the insurance policy contract on behalf of the company. Under the disclosure clause of insurance law John gave all the information about the owners, company, risks involved and other business detail. However, he did not give one important information about himself. In the past he was found guilty of fraud from a company he worked for 10 years ago as a manager. A fire occurred on the premises of the shop and most of the shop was burned. The owners of the company lodged a claim of $10,000 but the insurance company refused to pay the money. The owners filed a case against insurance company claiming that since they have signed a contract therefore insurance is bound to pay the claim of $10,000. The lawyers of insurance company argue that since Johan did not disclose…

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable:   Damaged Items FMV Just Prior to Damage   Original Item Cost (Basis)   Antique poster bed   $ 6,000       $ 5,000     Pool table     7,000         11,000     Flat-screen TV     700         2,500         Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2019 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019?