What penalties wedman face related to the use of debit card


Assignment: Business Law Scenarios

Before beginning work on this week's discussion forum, please review the link "Doing_Discussion_Questions_Right," the expanded grading rubric for the forum and any specific instructions for this week's topic.

Submit your answers for two scenarios to this Discussion Area. Start reviewing and responding to your classmates as early in the week as possible.

Select two of the scenarios listed below and explain the best solution for each. Include comments related to any ethical issues that arise. You should locate at least one scholarly source from the SUO Library or one case that has been decided or is currently pending to support your answer.

Scenario 1 - Holders and Holders in Due Course

Greg sold Mitch a fishing boat for $8,500, maintaining to Mitch that the boat was in excellent condition. Mitch gave Greg a check for $8,500, which Greg endorsed and gave to Denise in exchange for a debt he owed her. When Mitch took his friends out on the boat, he discovered that the boat leaked, needed to be painted, and required a new motor. Mitch stopped payment on the check, which had not yet been cashed.

• Describe the status of Greg and Denise as holders or holders in due course.
• Can Denise recover from Mitch as a holder in due course? Discuss

Scenario 2 - Electronic Funds Abuse

Cole Howard held an account with Regions Bank in Atlanta. Julie Wedman, a woman with whom Howard was briefly involved in a romantic relationship, stole his debit card and used it for fourteen months (well beyond the length of their relationship) to make unauthorized purchases in excess of $10,000. When Howard learned what was happening, he closed his account. The bank refused to reimburse him more than $476.56, the amount of unauthorized transactions that occurred within sixty days of the transmittal of the bank statement that revealed the first unauthorized transaction.

• If Howard files a lawsuit against the bank to recover the funds, which party will win? Explain the arguments for each party.
• What penalties could Wedman face related to the use of the debit card?

Scenario 3 - Financial Scams

Nick was the victim of a Nigerian email scam. He agreed to receive money owed to Nigel, a gentleman in allegedly located in London and would then pay the money out as directed by Nigel in exchange for a 10 percent fee. Nick received four checks totaling $37,500 and deposited them in an account at Home Bank. Nick then requested that Home Bank pay out $32,000. Thereafter, all of the checks Nick deposited bounced. Home Bank filed suit against Nick to recover the overdraft. Nick claims that Home Bank was negligent.

• Explain the arguments for each party and make a ruling as to which party should win supported by applicable law and/or course materials.

Scenario 4 - Consumer Protection

Suntan Enterprises (Sun), was a distributor of a product known as Sunless Tanning Tablets. The tablets allowed consumers to achieve a tan without exposure to the sun. When ingested, the tablets gave color to the skin through the use of various ingredients, one of which is thaxanthin, a coloring agent. The Food and Drug Administration (FDA) had not approved the use of thaxanthin as a coloring additive. The FDA became aware that Sun was selling the tablets. The FDA filed a lawsuit, seeking forfeiture of the tablets in the possession of the company. Sun challenged the FDA's right to seize the tablets.

• Explain the arguments for each party and make a ruling as to which party should win supported by applicable law and/or course materials.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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