Assignment 1: In this assignment, you will research and apply legal requirements associated to sales contracts, warranties and remedies.
Part 1: Choose one of the scenarios below and describe the best solution. Comprise comments associated to any ethical issues that occur.
Scenario 1:
Andy signed a negotiable note to Scott’s Appliance Store to purchase a refrigerator for his home. The note contained all of the notices needed by the Federal Trade Commission. The refrigerator didn’t perform as promised, often spewing water all over the floor. Andy planned to contact the appliance store the next day. Scott’s Appliance Store negotiated Andy’s note to Alliance Appliances, who took the note in good faith and with no notice of the breach of warranty.
A) Use the Internet to locate the FTC provision which regulates consumer credit transactions.
B) Does the FTC regulation apply to this case? Will Andy be needed to pay the amount owed on the refrigerator to Alliance Appliances?
C) Would the FTC regulation you found apply if Andy paid for the refrigerator with a personal check? If Andy paid with a personal check would he be needed to pay Alliance Appliance?
Scenario 2:
Brittney borrowed $1000 from Jason on September 1, 2012 and agreed to pay him back $100 each month starting in October. Brittney missed her October payment, however wrote Jason a check for $100 in November. Jason added a zero to the end and presented the check to First Bank, the drawee. First Bank paid Jason $1,000 out of Brittney’s account. First Bank exercised reasonable care at all times. One week after receiving her bank statement, Brittney observed the inappropriate payment and informed First Bank of the alteration.
A) Explain Brittney’s duty to observe her bank statement and report alterations to First Bank.
B) How much, if any, can First Bank charge Brittney’s account?
C) If Brittney files a lawsuit; will the debt she owes Jason be relevant?
Assignment 2: Choose four of the six topics from the list. In two to three paragraphs, give information regarding how your new business will handle issues associated to the topics. Justify your selection with relevant laws, cases or illustrations.
• Acceptance of checks.
• Post dated checks.
• Prevention of forgery (internal employees).
• Dishonored (returned checks).
• Acceptance of payment by electronic means, such as Internet sales.
• Gift cards.
• Issuing credit to customers.
(Reference for Assignment 2)
Business created in week 1:
If I were top choose one of the three principle forms of business organizations and make a business which sells at least one tangible product or provides a service I would select an individual proprietorship. A sole or individual proprietorship is a form of business ownership in which one individual owns the business, and I like the idea of being the boss. As the owner I would be the sole worker of the business in the beginning, starting out small and then employ as many others as required.
My business would sell homemade and man-made personal items like candles and woodwork, I am sure I would also resale items I could find at wholesale prices also, even if just to keep my shelves stocked. My business would go by the name Angel’s Inspirations. The principal office, for my convenience, would be situated somewhere close to my home on the gulf coast of Mississippi. I would be proud to be the sole proprietor of a business in which I could make a living out of crafting and resale.
Benefits of this form of organization comprise no organizational fees, full control over all decisions and less taxes. The demerits comprise unlimited personal liability and possible resource limitations. The other advantage can be found with the lack of legal needs for the formation of a sole proprietorship in the state of Mississippi. First a name is needed and then licenses, permits and essential zoning clearance and then an employer identification number is needed.
Works Cited:
Smith, S. (2013). How to Establish a Sole Proprietorship in Mississippi.In Nolo. Retrieved May 19, 2013, from:
https://www.nolo.com/legal-encyclopedia/how-establish-sole-proprietorship-mississippi.html
Twomey, D. (2013). Anderson's Business Law and the Legal Environment, Comprehensive Volume (22nd ed). Cengage Learning. Retrieved from:
https://digitalbookshelf.southuniversity.edu/books/9781285696683/id/L41-2-2