Smith and Roberson’s Business Law
Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 14, Problem 3Q
Summary Introduction

To discuss: Whether person J permitted to recover the proprietorship of the 2016 car.

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Abigail is in the business of selling fine antiques. Abigail purchased an antique desk for $5,000 from Jackson, and gave a promissory note for payment. Concerned that Jackson might not accept the note, Abigail had her friend Catalina sign the promissory note as well. Jackson accepted the note as payment. Two weeks later, Jackson sought payment on the note. Abigail told Jackson that she is not responsible for the promissory note because Catalina signed the note too, and Jackson had to seek payment from Catalina first. Abigail also spotted a beautiful set of vintage chairs owned by Max that would be perfect for her store. Abigail wrote a $10,000 check, also signed by her business associate Orville as an accommodation party, to Max to pay for the chairs. Max presented the check to Westville Savings, the bank where Abigail has a checking account, for payment. Westville Savings dishonored the check claiming Abigail had insufficient funds. Who is liable for these negotiable…
Kevin Miller bought a house in Atlanta in 2009 and took out a mortgage. He lived in the house until 2012, when he accepted a job in Chicago; from then on, he rented the house. He received a letter demanding payment from a law firm on behalf of the mortgage company in 2014. By this time, Miller was renting the property to strangers and thus was making a business use of the property. Miller claimed that the law firm had violated the Fair Debt Collection Practices Act. The law firm replied that the letter is outside the scope of the Act because it was trying to collect a business debt rather than a consumer debt. a. What are the arguments that the debt is a consumer debt? b. What are the arguments that the debt is a business debt? c. Which arguments would prevail? Explain.
Kate owned a small grocery store. One day John went to the store and purchased a can of chip dip that was, unknown to Kate or John, adulterated. John became seriously ill after eating the dip and sued Kate for damages on the grounds that she breached an implied warranty of merchantability. Is Kate liable? Why?
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