Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Helen was a very forgetful person, so she had placed her bank code (PIN number) on the back of her debit card. A thief stole Helen’s card and was able to take $100 from an ATM on the day of the theft. That same day, Helen realized that the card was gone and phoned her bank. The following morning, the thief withdrew another $100. For how much, if anything, is Helen responsible? Why?
You and your spouse have separate charge accounts at a local department store. When you tried to use your card last week, you were told that you were over your credit limit. This puzzled you because you had paid the entire account balance several weeks ago. When the monthly statements arrived yesterday, the error was clear. The store had credited your payment to your spouse's account.
Your account was treated as over the limit, and the store charged you interest on the unpaid balance. You suspect that part of the problem is that you and your spouse use the same last name (Morales) and have similar first names (Carmen and Carmelo).
Write a brief letter to the store requesting correction of your accounts and suggesting a way to identify your accounts so that this error does not happen again.
Madam Lorraine’s daughter Maame Efua has just completed Senior High School and due to the Covid 19 pandemic that led to the closure of universities, she has been helping with record keeping at her mother’s convenient mini Mart. Maame Efua took responsibility of recording her mother’s purchases of goods from suppliers (both on credit and cash basis) and also issues receipts to customers when they buy goods. The policy of the shop is cash sales only.
Prior to Maame Efua assisting her mom, Mr. Fred, an accountant used to visit the shop two days after the end of the month to check Madam Lorraine’s purchase invoices, bank deposits, cash at hand, etc in order to prepare the financial records for the month for a small fee. He also assists with records to be sent to the tax authorities and make the necessary payments.
Having now been conversant with the amount of sales per day and the month, and also recording all the purchases, Efua believes she is able to determine how much profit her mother…
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- Amy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Bowling. Klein wrote to Statewide Claims Services, the administrator for Bowling’s insurer, asking for “all the insurance money that Mr. Bowling had under his insurance policy.” In exchange, Klein agreed to sign a limited release that could not contain “any language saying that [she would] have to pay Mr. Bowling or his insurance company any of their incurred costs.” Statewide sent a check and a demand that Klein “place money in an escrow account in regards to any and all liens pending.” Klein refused the demand. Did Statewide and Klein have an enforceable agreement? Discuss.arrow_forwardWilson was employed as the office manager of Palmer & Ray Dental Supply of Abilene, Inc. Soon after an auditor discovered a discrepancy in the company’s inventory, Wilson confessed to cashing thirty-five checks that she was supposed to deposit on behalf of the company. Palmer & Ray Dental Supply used a rubber stamp to indorse checks. The stamp listed the company’s name and address but did not read “for deposit only.” The company’s president, James Ray, authorized Wilson to indorse checks with this stamp. Wilson cashed all of the checks at First National Bank.a. What are the arguments that First National Bank is liable to Palmer & Ray Dental Supply for converting the company’s funds by giving Wilson cash instead of depositing the checks into the company’s bank account? b. What are the arguments that First National Bank is not liable to Palmer & Ray Dental Supply? c. Explain who should prevail.arrow_forwardAmy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Bowling.Amy Clne wrote to Statewide Claims Services, the administrator for Bowling's insurer asking for "all the insurance money that Mr.Bowling had under his insurance policy". In exchange, Klein agreed to sign a limited release that could not contain any language saying that she would have to pay Mr.Bowling's by or his insurance company any of their incurred costs". Statewide sent a check and a demand that Klein "place money in an escrow account in regards to any and all Leon's pending." Did Statewide and Klein have an enforceable agreement?arrow_forward
- Tom gave his daughter, Nicole, permission to access his business account online but not his principal account. Tom has just discovered that Nicole took P25,000 from the principal account (current account) hoping her father would not notice it. As Tom wrote to the manager of his local bank months ago, expressly forbidding the bank to allow his daughter to do this, he wants the bank to refund the P25,000. With respect to BDO Online Account Opening Service (“Service”) Terms and Conditions, what recommendation can you give him?arrow_forwardJesse has a good job and pays off his one credit card every month. He was surprised that when he applied for a loan to buy a car, he was rejected. What are the steps that he should take to check his credit report for errors?How can he resolve any errors that he discovers?arrow_forwardBraun issued a $35 check to Rice. Rice took the check to Braun’s bank and had it certified. Rice then raised the amount to $350 and negotiated it to Turner. Turner presented the check for payment and received $350. When Braun received her canceled checks, she noticed the alteration and notified the bank. Who will suffer the loss?arrow_forward
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