BUSINESS LAW (LOOSE)-W/ACCESS >CUSTOM<
16th Edition
ISBN: 9781305768697
Author: Mann
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 21CP
Summary Introduction
Case summary:
Person W purchased a list of household items on credit from company WT. Company WT retained the rights to repossess an item in the case of default of an instalment and every instalment would be prorated to all the items such that unpaid balance would remain on all items until the last instalment is paid in full. Person W defaulted on a single payment and company WT sought to repossess the items purchased by person W. The purchase was between 2009 and 2014.
To discuss: If company WT is right to repossess all the items.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
David M. Fox was a distributor of tools manufactured and sold by Matco Tools Corporation (Matco). Cox purchased tools from Matco, using a credit line that he repaid as the tools were sold. The credit line was secured by Cox’s Matco tool inventory. In order to expedite payment on Cox’s line of credit, Matco decided to authorize Cox to deposit any customer checks that were made payable to “Matco Tools” or “Matco” into Cox’s own account. Matco’s controller sent Cox’s bank, Pontiac State Bank (Pontiac), a letter stating that Cox was authorized to make such deposits. Several years later, some Matco tools were stolen from Cox’s inventory. The Travelers Indemnity Company (Travelers), which insured Cox against such a loss, sent Cox a settlement check in the amount of $24,960. The check was made payable to “David M. Cox and Matco Tool Co.” Cox indorsed the check and deposited it in his account at Pontiac. Pon-tiac forwarded the check through the banking system for payment by the drawee bank.…
Joe owes Barry 100,000. Joe enters into an agreement with Citibank to borrow 100,000. Joe intends to use the loan proceeds to repay Barry. Citibank has does not know that Joe planned to pay Barry with the proceeds. Citibank agrees to make the loan but Citibank breaches its contract with Joe and does not lend him the money. Joe defaults on his loan to Barry, so Barry sues Citibank because they breached their contract with Joe. Barry argues that he is a third party beneficiary of Joe’s and Citibank’s contract. What is the outcome of Joe’s suit?
Martha sells goods to James for $25,000. Martha assigns her right to receive the $25,000 to XYZ Finance James refuses to pay XYZ the $25,000. James makes two arguments for not paying. First James claims that XYZ has no privity of contract and that XYZ is not a third-party beneficiary of its contract with Martha. Second – James claims that the goods were worthless. Assume that the goods were worthless. You are the judge. Who wins and why? Address both arguments that James makes.
Chapter 13 Solutions
BUSINESS LAW (LOOSE)-W/ACCESS >CUSTOM<
Ch. 13 - Prob. 1COCh. 13 - Prob. 2COCh. 13 - Prob. 3COCh. 13 - Prob. 4COCh. 13 - Prob. 5COCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5Q
Ch. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10QCh. 13 - Prob. 12CPCh. 13 - Prob. 13CPCh. 13 - Prob. 14CPCh. 13 - Prob. 15CPCh. 13 - Prob. 16CPCh. 13 - Prob. 17CPCh. 13 - Prob. 18CPCh. 13 - Prob. 19CPCh. 13 - Prob. 20CPCh. 13 - Prob. 21CPCh. 13 - Prob. 22CPCh. 13 - Prob. 1TSCh. 13 - Prob. 2TSCh. 13 - Prob. 3TS
Knowledge Booster
Similar questions
- A 72,000 square foot multi-tenant retail property with an Equinox gym and a Wendy’s restaurant in Columbus, Ohio was recently sold for $7,200,000. Selling costs, including a brokerage fee, totaled five percent of the purchase price. The mortgage loan balance at the time of sale was $3,760,000. The property was purchased eight years earlier for $4,200,000, and annual depreciation deductions of $120,000 were taken each year for tax purposes. If the combined effective federal and state income tax rates on capital gains and tax depreciation recapture is 30%, what was the after-tax cash flow from the sale of the property? a. $2,288,000 b. $2,252,000 c. $2,540,000 d. $2,000,000arrow_forwardCarol White ordered a $225 pair of contact lenses through an optometrist. White, an emancipated minor, paid $100 by check and agreed to pay the remaining $125 at a later time. The doctor ordered the lenses, incurring a debt of $110. After the lenses were ordered, White called to cancel her order and stopped payment on the $100 check. The lenses could be used by no one but White. The doctor sued White for the value of the lenses. Will the doctor be able to recover the money from White? Explain.arrow_forwardA consumer entered into an agreement with Rent-It Corporation for the rental of a television set at a charge of $17 per week. The agreement also provides that if the renter chooses to rent the set for seventy-eight consecutive weeks, title would be transferred. The consumer now contends that the agreement was really a sales agreement, not a lease, and therefore is a credit sale subject to the Truth-in-Lending Act. Explain whether the consumer is correct.arrow_forward
- An agent is NOT personally liable on a contract made with a third party when: 1) neither the existence, nor the name of the principal is known to the third party. 2) the name and existence of the principal are known to the third party. 3) the agent makes the contract with the third party in his/her personal capacity as a co-signor or obligor with the principal. 4) the existence, but not the name of the principal is known to the third party.arrow_forwardGinny DeWitt borrowed $30,000 from SunTrust Bank to pay for her first year of college and signed a promissory note that required payments to start six months after graduation or the student fails to enroll in at least one-half of the full time load. Ginny dropped out of college to pursue her passion of opening a gift shop. When Ginny failed to pay the debt, SunTrust transferred the note to First Bank in New York. New York Bank obtained a court order allowing it to garnish Ginny’s wages and her federal income tax refund. Ginny filed a lawsuit seeing to avoid the payment, claiming the debt was not valid because she did not sign any documentation promising to pay First Bank. She also argued that the note lacked consideration. Explain the holder or holder in due course status of SunTrust when the bank took the note from Ginny and then First Bank when it took the note from SunTrust. Address GInny’s arguments concerning the validity of the debt. Determine the outcome of the case and…arrow_forwardWalter Duester purchased a John Deere combine from St. Paul Equipment. John Deere Co. was the lender and secured party under the agreement. The combine was pledged as collateral. Duester defaulted on his debt, and the manager of St. Paul, Hansen, was instructed to repossess the combine. Hansen went to Duester’s farm to accomplish this. Duester told him that he had received some payments for custom combining and would immediately purchase a cashier’s check to pay the John Deere debt. Hansen followed Duester to the defendant, Boelus State Bank. Hansen remained outside, and Duester returned in a few minutes with a cashier’s check in the amount of the balance of his indebtedness payable to John Deere. The check had been signed by an authorized bank employee. When John Deere, however, presented the check to the bank for payment shortly thereafter, the bank refused to pay, claiming that Duester acquired the cashier’s check by theft. Is John Deere subject to this defense? Why or why not?arrow_forward
- Andrews and Brown hired a bookkeeper, Jenice, and gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice can pay employees’ wages and other company bills. Jenice decides to cheat her employers out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers $10,000 out of the Bayside account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money. Evaluate which party or parties bear the loss.arrow_forwardBefore the purchase transaction, Shell had made know to Carbonic Co the purpose and intended use of electrodes. In short, Shell company put their trust and reliance on the skill and expertise of Carbonic Co. So, Shell ordered 60,000 kilograms of welding electrodes from Carbonic Co. for use in a project involving the fabrication of a cross-country gas transmission line. It turned out the electrodes are incapable of producing satisfactory weld in a vertical position. Shell sued Carbonic Co for violation under the Sale of Goods Act. Does Shell action prosper? Please state your reasons.arrow_forwarddelivering cash or another financial asset. However, Entity A's - Entity A issues an instrument that is re-purchasable by delivering cash or another financial asset. However, Entity A's contractual obligation to repurchase the instrument is conditional on the holder (the counterparty) exercising its right to redeem. Which of the following statements is correct from the perspective of Entity A? The instrument is a financial liability because when the holder exercises its redemption right, Entity A does not have the unconditional right to avoid making the а. payment. b. The instrument is an equity instrument because Entity A's contractual obligation to deliver cash or another financial asset is conditional on the holder exercising its right to payment. c. Entity A initially classifies the instrument as an equity с. instrument. However, when the holder exercises its redemption right, the instrument is reclassified to financial liability. d. The instrument is classified as a financial…arrow_forward
- Is there provision for payment of interest on delayed gratuity and what penalties exist for non-compliance with the Gratuity Act?arrow_forwardColumbia University brought suit against Jacobsen on two notes signed by him and his parents. The notes represented the balance of tuition he owed the University. Jacobsen counterclaimed for money damages due to Columbia’s deceit or fraudulent misrepresentation. Jacobsen argues that Columbia fraudulently misrepresented that it would teach wisdom, truth, character, enlightenment, and similar virtues and qualities. He specifically cites as support the Columbia motto: “in lumine tuo videbimus lumen” (“In your light we shall see light”); the inscription over the college chapel: “Wisdom dwelleth in the heart of him that hath understanding”; and various excerpts from its brochures, catalogues, and a convocation address made by the University’s president. Jacobsen, a senior who was not graduated because of poor scholastic standing, claims that the University’s failure to meet its promises made through these quotations constituted fraudulent misrepresentation or deceit. Decision?arrow_forwardSam owes Nick $200,000. Sam goes to Chase bank to take out a loan of $200,000 so he can pay off his debt to Nick. Chase agrees to make the loan but breaches its contract with Sam. Sam then defaults on his loan to Nick. Nick sues Chase bank because they breached their contract with Sam. What is the probable outcome of Nick’s suit against Chase?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON