Business Law and Ethics Chp's 14-17

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken. She goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for

14 days

Petra signs a check payable to Quentin, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quentin to RCU is

A negotiation

Ana writes a check to Becky on Ana's account at Community Bank. The bank dishonors the check even though Ana has sufficient funds in her account. The bank is liable to

Ana

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finances Bank pays the check. Most likely

Finance Bank will have to recredit Daisy's account

Cleo writes a check for $100 drawn on Debit & Credit Bank and presents it to Elegant Jewelers for payment. If the check is not backed up by sufficient funds, Cleo may be prosecuted for

Fraud

Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is

Garden Fields Bank

Foster forges Greta's signature on a check "payable to the order of Foster" drawn on Greta's account in Hearthside bank. Most likely, if the bank pays the check

Hearthside will have to recredit Greta's account

Fiona writes a check "pay to the order of Gerri" drawn on Fiona's account at Home & Farm Bank. Gerri presents the check for payment to Home & Farm, which accepts it. primarily liable on the check is

Home & Farm

Lena borrows from Mac and Nicol, using the same collateral for both loans. Only Nicol has a perfected security interest. Lena defaults on both loans. The party with first rights to the collateral is

Nicol only

To finance the purchase of a house from Tuna, Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10, 2045. To be negotiable, this instrument must include the signature of

Uri

Barry draws a check payable to "Cash" and presents it to Dollars & Sense store for payment. This instrument is

a bearer instrument

Arvil receives a payroll check from Business Solutions Inc,. and indorses it by singing her name on the back of the check. The is

a blank indorsement

Harold files a bankruptcy petition. The resulting automatic stay will apply to Harold's payments for

a car.

Gwen deposits $6,000 with Hearthstone Bank on July 1, 2016. Hearthstone promises to repay Gwen the $5,000 plus 2 percent annual interest on July 1, 2021 issued to Gwen

a certificate of deposit

Keanu presents an instrument that states "pay to the order of Laura" to Mega Bank for payment. This instrument is the most common of negotiable instrument, which is

a check

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when

a debtor's creditors force the debtor into bankruptcy proceedings.

O'Malley negotiates an order instruments to Phil by

a delivery to Phil with any necessary indorsement

George borrows funds from Hometown Credit Union (HCU) to buy real property. George signs a written instrument that gives HCU an interest in the property as security for the debt's payment. This is

a mortgage.

Lenders Bank provides Molly with a mortgage to buy a home. Six years into the term of the loan, Molly loses her job and is unable to make the payments. Possible methods for these parties to avoid foreclosure include all of the following except

a prepayment penalty.

Wild River Tours Corporation wants to formulate a plan under which it pays a portion of its debts and is discharged of the remainder while continuing in business. To accomplish this goal, Wild River should file a petition in bankruptcy for relief through

a reorganization.

Emily writes and signs a check payable to "Festival Cinema", Georg, Festival's manager, indorses the check "For deposit only". This is

a restrictive indorsement

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for

a writ of attachment.

Helen's debt to Imprints Printers is past due. Imprints obtains a judgment against Helen, but she refuses to pay it. Imprints asks the court for an order that directs the sheriff to seize and sell any of Helen's nonexempt real or personal property that is within the court's geographic jurisdiction. This is a request for

a writ of execution.

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is

an artisan's lien.

Patty files a petition in bankruptcy. At the moment of filing

an automatic stay goes into effect.

Jessie's debt to Karla is past due. Karla brings a legal action against Jessie to collect the debt. Karla asks the court to order Liberty Bank, in which Jessie has an account, to pay a portion of the funds to Karla. This is a request for

an order of garnishment.

Erin draws a check payable to "Foodland" to buy groceries. Erin's check is most likely

an order to pay

Builders Exchange, Inc., issues an instrument in favor of Custom Construction Company. For the instrument to be negotiable, it must

be payable on demand or at a specific time

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. 7 months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union

can charge Joni's account for $500

Elmore pays First National bank $1000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is

cashier's check

Tri State bank agrees to accept a check by setting aside sufficient funds to cover the amount. The check is considered

certified

Gem Jewelers files a voluntary petition for bankruptcy. In listing its assets, Gem intentionally does not include certain valuable stones. After Gem is granted a discharge, Hasty Catering, one of Gem's unsecured creditors whose claims were discharged, learns of the fraud. Hasty can

enforce its claim against Gem.

The payment of Olinda's debt to Prudent Loan Company is guaranteed by Olinda's personal property. Prudent is most likely to perfect its interest by

filing a financing statement with the appropriate authority.

Gary writes a check drawn on Hilltop Bank for $400 "payable to Ivan" on May 1. Gary dies on May 3. Ivan presents the check on the bank on May 5. unaware of Gary's death, the bank

must pay the check

Brad, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is

negotiable

Bernice signs a promissory note for $1500 in favor of Community College College. This undated but specifies that it is "payable on month after date." This note is

not negotiable, because the maturity date cannot be determined from the face of the instrument

Dylan defaults on a debt to Eastside Bank. Eastside will be able to recover the debt from all of the following except

proceeds from the sale of Dylan's prize-winning pet dog.

Taila, who is not a Urban Bank customer, attempts to cash a check drawn on the bank. The check is considered dishonored if Urban Bank

refuses to pay it

On the back of a check payable to Nero, Nero writes "Pay to Odell, without recourse" and signs it. This

relieves Nero of liability on the check

Clyde issues a check payble to Discount Mart, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clyde's bank, Farmers State bank, pays the check. The bank can recover the amount of the check from

the bank, which can recover from Ethel

LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in 60 days, Midstates Utility signs and dates the draft. On this instrument, LNG is

the drawee

Marta has checking account with Neighbors Bank. Marta signs check "payable to Olive" drawn on Marta's account. Neighbors Bank is

the drawee

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is

the drawer

Erin draws a check payable to "Foodland" to buy groceries. With respect to Erin's check, Foodland is

the payee

Franco buys a sound system from Georg at Georg's garage sale. Franco writes a check for $250 to pay for the system. Georg is

the payee

Jill believes that she should file a plan for a Chapter 13 discharge in bankruptcy. A court will confirm her bankruptcy plan if it provides for

the surrender of all collateral to the creditors.

Milos files a petition in bankruptcy. His dischargeable debts include

unsecured credit-card debt.

Dean files a bankruptcy petition under Chapter 7. If this use of Chapter 7 is found to constitute substantial abuse, the most likely consequence is

​Dean's petition will be dismissed.

Roland files for Chapter 7 bankruptcy. After all his assets have been sold and the proceeds distributed among his creditors, Roland's remaining debts

​are discharged.