For each scenario do the following
1. Write out the Law/Rule that Applies
2. Give the Chapter that the law/rule is in? (A rule may simply be a definition)
3. Give the answer to the scenario and explain why it is the answer?
If you do not do ALL 3, you will not receive any credit for the question. Each questions is worth 3 points, for a total of 36 points for this project.
1. Neelan agreed orally with Anthony to sell Anthony a house for $100,000. Anthony sent Neelan a signed agreement and a downpayment of $10,000. Neelan did not sign the agreement but allowed Anthony to move into the house. Before closing, Neelan refused to go through with the sale. Anthony sued Neelan to compel specific performance. Under the provisions of the Statute of Fraud, EXPLAIN who will win the law suit and why?
a. What law applies to this scenario?
b. What Chapter is the Law/Rule in?
c. Explain who will win the law suit and why?
2. Nigel and Frank entered into a contract in which Nigel was obligated to deliver certain goods to Frank by September 10. On September 3, Nigel told Frank that Nigel had no intention of delivering the goods required by the contract prior to September 10. What can Frank do under these circumstances?
a. What law applies to this scenario?
b. What Chapter is the Law/Rule in?
c. Explain what Frank can do under the circumstances?
3. On May 2, Mason orally contracted with Sears Appliances to buy $480 stove and microwave for household use. Mason and the Sears sales person agree that deliver would be made on July 2. ON May 5, Mason called Sears and requested that the deliver be moved to June 2. The Sears salesperson agreed with the request. On June 2, Sears failed to deliver the stove and microwave to Mason because of an inventory shortage. Sears advised Mason that it would deliver the appliances on July 2 as originally agreed. Mason believes that Sears has breached its agreement with Mason. Sears contends that its agreement to deliver on June 2 was not binding. Sears's contention is
a. What law applies to this scenario?
b. What Chapter is the Law/Rule in?
c. Explain whether Sear's is correct in what they contend and explain why or why not?
4. Donut Co. offered to sell Great American Markets 20,000 pounds of Donuts at $1.00 per pound, subject to certain specified terms for delivery. Great American replied in writing as follows:
We accept your offer for 20,000 pounds of Donuts at $1.00 per pound, weighing scale to have valid city certificate. Was a contract formed?
a. What law applies to this scenario?
b. What Chapter is the Law/Rule in?
c. Was a contract formed when Great American accepted the contract, but added additional terms? Explain why and why not?
5. A sheep rancher agreed in writing to sell all the wool shorn during the shearing season to weaver. The contract failed to establish the price and minimum quantity of wool. After the sheering season, the rancher refused to deliver the wool. The weaver sued the rancher for breach of contract. Under the UCC, will the weaver win?
a. What law applies to this scenario?
b. What Chapter is the Law/Rule in?
c. Will Weaver win, Why or Why not?
6. The below instrument is a:
a. What law/rule applies to this scenario?
b. What Chapter is this law or rule in?
c. What type of instrument is this?
7. The below instrument is a:
a. What law/rule applies to this scenario?
b. What Chapter is this law or rule in?
c. What type of instrument is this?
8. Is this a negotiable or a nonnegotiable instrument? If it is nonnegotiable how will it be treated?
a. What law/rule applies to this scenario?
b. What chapter is this law or rule in?
c. Is this instrument negotiable or nonnegotiable and why? If it is nonnegotiable explain how it will be treated.
9. Which of the following transactions would illustrate a secured party perfecting its security interest by taking possession of the collateral?
a. A bank receiving a signed mortgage on a house
b. Nate borrowing money from a friend to purchase the house and he gives him his garage door opener to get in
c. A pawn shop owner lending money to a customer who has agreed to make payments
d. A consumer borrowing to buy a car
- What law/rule applies to this scenario?
- What chapter is the law or rule?
- Which transaction illustrates a secured party perfecting its security interest by taking possession collateral? And Explain why
10. Lucy and Tremayne are married and want to file bankruptcy but they do not want to lose any assets. They want to enter into a reorganization plan. Explain which type of bankruptcy Lucy and Tremayne should file and why?
a. What law/rule applies to this scenario?
b. What chapter is the law or rule?
c. Explain which type of bankruptcy Lucy and Tremayne should file and why?
11. John's son was not his agent but contracted to purchase a computer in the name of John. When John learned of this, John sternly rebuked his son but continued to use the computer for several weeks. After losing interesbt in the computer, John offered to return it, saying that the purchase was unauthorized. Can John return the laptop and say that the transaction was unauthorized?
a. What law/rule applies to this scenario?
b. What chapter is the law or rule?
c. Can John return the laptop and say that the transaction was unauthorized? Explain
12. Sara and Sally rely on the statements of Alice, an Accountant, In a lawsuit brought by Sara and Sally against Alice for fraud, Alice seeks to avoid liability based on the fact that neither Sara nor Sally was in privity of contract with Alice. Alice knew Sara might rely on the financial information provided, but Alice did not know of Sally or anyone in her position. Can Sara and Sally recover against Alice?
a. What law/rule applies to this scenario?
b. What chapter is the law or rule?
c. Can Sara and Sally recover against Alice? Why or why not?