Question: The Home Shopping Club ordered 12,000

> Ann Weldon maintained an account at Trust Company Bank. James Weldon, her son and a garment broker, purchased textile goods from Sportswear Services for resale to another corporation known as Thicket Textiles. Sportswear demanded certified funds from Jam

> Arthur Odgers died, and his widow, Elizabeth Odgers (Elizabeth Salsman by remarriage), retained Breslow as the attorney for her husband ’ s estate. She received a check payable to her drawn on First National City Bank. Breslow told her to deposit it in h

> The Jordan Keys law firm represented the Greater Southeast Community Hospital of Washington, D.C., in a medical malpractice suit against the hospital. The hospital was self-insured for the first $1,000,000 of liability and the St. Paul Insurance Co. prov

> Adam Paul Strege (APS) opened a checking account at U.S. Bank. Just below his signature card for the account, he wrote, “ Call if I bounce a check. ” APS bounced several checks, and each time U.S. Bank covered those checks but it did not notify APS of th

> Harold H. Heidingsfelder signed a credit agreement as vice president of J. O. H. Construction Co. for a line of credit with Pelican Plumbing Co. The credit agreement contained the following language: In consideration of an open account privilege, I hereb

> William Elias was the former owner of Direct Lending, a subprime mortgage company purchased by EA Management. Sometime after the sale, Elias went to Chase Bank and had three cashier ’ s checks drawn to third parties and payable out of Direct Lending acco

> Hixson paid Galyen Petroleum Co. money he owed by issuing three checks to Galyen. The bank refused to cash the three checks because of insufficient funds in the Hixson account to pay all three. Galyen sued the bank. What was the result? Why? [ Galyen Pet

> James Horne ’ s will provides that his estate is to be distributed to his heirs per capita . Upon his death, two of his three children are surviving and his deceased child left two children (James ’ s grandchildren). His will provides that all his proper

> Scott D. Leibling gave his bank, Mellon Bank, an oral stop payment order. Nineteen months later, the check emerged and Mellon Bank honored it. Lei- bling has filed suit against Mellon Bank for acting unreasonably under the circumstances. Is Mellon Bank l

> Larry Phillips was hired for a two-year period as executive secretary of the Montana Education Association (MEA). Six months later, he was fired. He then sued MEA for breach of contract and sued the directors and some of the other employees of MEA on the

> Norris, who was ill in the hospital, was visited by his sister during his last days. Norris was very fond of his sister and wrote a check to her that she deposited in her bank account. Before the check cleared, Norris died. Could the sister collect on th

> Bogash drew a check on National Safety Bank and Trust Co. payable to the order of Fiss Corp. At the request of Fiss Corp., the bank certified the check. The bank later refused to make payment on the check because of a dispute between Bogash and the corpo

> John G. Vowell and his wife, now deceased, had a checking account and a savings/money-market account with Mercantile Bank of Arkansas. In June 1997, Dr. Vowell and his wife allowed their daughter, Suzan Vowell, now also deceased, and her boy- friend to

> Dean bought a car from Cannon. As payment, Dean gave him a check drawn on South Dorchester Bank of Eastern Shore Trust Co. Cannon cashed the check at the Cambridge Bank of Eastern Shore Trust Co. The drawee bank refused payment when the check was present

> Stock Solution is a “stock photo agency” that leases photographic transparencies produced by professional photographers for use in media advertising. Between October 1, 1994, and May 31, 1995, Stock Solution delivered Axiom 107 color transparencies to be

> Gloria maintains a checking account at First Bank. On the third day of January, the bank sent her a statement of her account for December accompanied by the checks that the bank had paid. One of the checks had her forged signature, which Gloria dis- cove

> Elmore purchased a car from Doenges Brothers Ford. The car had been placed with the dealership by a dealership employee as part of a consignment arrangement. Elmore was unable to obtain title to the car because the Environmental Protection Agency had iss

> McInnis purchased a tractor and scraper as new equipment of the current model year from Western Tractor & Equipment Co. The written contract stated that the seller disclaimed all warranties and that no warranties existed except those stated in the contra

> Valerie and Flora are the beneficiaries of a trust left to them by their mother upon her death. Their mother named Art Casanelli, a family friend, as the trustee. Flora has seen Art driving a new car and has learned that he just purchased a new and rathe

> Mrs. Kirby purchased a wheelchair from NMC/ Continue Care. The wheelchair was customized for her and her home. When the wheelchair arrived, it was too wide to fit through the doorways in her home. What options does Mrs. Kirby have? [ Kirby v. NMC Continu

> Sonya Kaminski purchased from Billy Cain ’ s Cornelia dealership a truck that was represented to her to be a 1989 Chevrolet Silverado pickup. However, subsequent incidents involving repair of the truck and its parts, as well as a title history, revealed

> In 1996, Congress offered national banks the opportunity to become Subchapter S entities. Amboy Bancorporation was a small, highly profitable New Jersey Bank that was overcapitalized. Amboy ’ s president and CEO utilized Bank Advisory Group, Inc. (BAG),

> Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food container – producing company based in Cairo, Egypt, to enable Hakim to meet its growing demand for plastic containers.

> U.S. Steel Corp. formed Orinoco Mining Co., a wholly owned corporation, to mine large deposits of iron ore that U.S. Steel had discovered in Venezuela. Orinoco, which was incorporated in Delaware, was subject to Venezuela’s maximum tax of 50 percent on n

> Emily Lieberman and Amy Altomondo were mem- bers of the Alpha Chi Omega (AXO) sorority at Bowling Green State University. They negotiated with Johnathan James Furlong for the purchase of custom-designed sweaters for themselves and their sorority sisters

> Soon after Gast purchased a used auto from a Chevrolet dealer, he experienced a series of mechanical problems with the car. Gast refused to make further payments on the bank note that had financed the purchase. The bank took possession of the automobile

> Firwood Manufacturing Co. had a contract to sell General Tire 55 Model 1225 postcure inflators (PCIs). PCIs are $30,000 machines used by General Tire in its manufacturing process. The contract was entered into in 1989, and by April 1990 General Tire had

> Joseph Perna purchased a 1981 Oldsmobile at a traffic auction conducted by Locascio. The car had been seized pursuant to action taken by the New York City Parking Violation Bureau against Jose Cruz. Perna purchased the car for $1,800 plus tax and towing

> GRAS is a Michigan corporation engaged in the business of buying and selling cars. Between 1997 and 2000, Katrina Stewart was employed as a man- ager by GRAS. During that period, Stewart wrote checks, without authority, on GRAS ’ s corporate account paya

> Cronin, an employee of Epicycle, cashed his final paycheck at Money Mart Check Cashing Center. Epicycle had issued a stop payment order on the check. Money Mart deposited the check through normal banking channels. The check was returned to Money Mart mar

> Stephan ’ s Machine & Tool, Inc., purchased a boring mill from D&H Machinery Consultants. The mill was a specialized type of equipment and was essential to the operation of Stephan ’ s plant. The purchase price was $96,000, and Stephan ’ s had to borrow

> Ramtreat Metal Technology provided for a “double your money back” remedy in its contracts for the sale of its metal drilling assemblies. A buyer filed suit seeking consequential damages and cost of replacement. Ramtreat said that its clause was a limitat

> Wolosin purchased a vegetable and dairy refrigerator case from Evans Manufacturing Corp. When Evans sued Wolosin for the purchase price, Wolosin claimed damages for breach of warranty. The sales contract provided that Evans would replace defective parts

> Shareholders of Bear Stearns sued the directors of the corporation for damages for violation of the directors ’ fiduciary duties in effecting a stock-for-stock merger with J.P. Morgan Chase for an implied value of $10 per share while the company ’ s stoc

> McNeely entered into a contract with Wagner to pay $250,000 as a lump sum for all timber present in a given area that Wagner would remove for McNeely. The contract estimated that the volume in the area would be 780,000 board feet. Wagner also had provisi

> Formetal Engineering submitted to Presto a sample and specifications for precut polyurethane pads to be used in making air-conditioning units. Formetal paid for the goods as soon as they were delivered but subsequently discovered that the pads did not co

> Catherine Joseph, who does business as Metro Classics, sold clothing to Jackson Hole Traders, a corporation owned by David and Elizabeth Speaks. Jackson Hole Traders is located in Jackson, Wyoming, and sells clothing for men and women through a retail

> Marc Rich & Co., A.G., a Swiss commodities trading corporation, refused to comply with a grand jury subpoena requesting certain business records maintained in Switzerland and relating to crude oil transactions and possible violations of U.S. income tax l

> Harry Ulmas made a contract to buy a new car from Acey Oldsmobile. He was allowed to keep his old car until the new car was delivered. The sales contract gave him a trade-in value of $650 on the old car but specified that the car would be reappraised whe

> Trefalcon (a commercial arm of the government of Ghana) entered into a contract with Supply Com- mission as a purchaser of residual fuel oil (RFO). Supply Commission agreed, among other things, to supply Trefalcon with RFO at competitive prices as reserv

> The text of a handwritten note stated simply that “‘ I Robert Harrison owe Peter Jacob $25,000 ... , ’ /s/ Robert Harrison. ” Peter Jacob sought to use the handwritten note as a negotiable promissory note. Can he? [Jacob v. Harrison , 49 U.C.C. Rep. Serv

> Mark Murray and Ian Peck are art dealers who own separate art galleries located in New York. Robert and Jean Weil reside in Montgomery, Alabama, and are art collectors. Murray and Sam Lehr, a business acquaintance of his, traveled to Montgomery to see th

> Compare an implied contract with a quasi-contract.

> National Computers, Inc., a U.S. firm, entered into a joint venture with a Chinese computer manufacturing organization, TEC. A dispute arose over payments due the U.S. firm under the joint venture agreement with TEC. The agreement called for disputes to

> Hornell Brewing Company is a supplier and marketer of alcoholic and nonalcoholic beverages, including the popular iced tea drink, Arizona. In 1992, Stephen A. Spry and Don Vultaggio, Hornell ’ s chairman of the board, made an oral agreement for Spry to b

> Jerry O. Peavy, Jr., who did not have a bank account of his own, received a draft from CNL Insurance America in the amount of $5,323.60. The draft was drawn on CNL ’ s account at Bank South, N.A., and was “ payable to the order of Jerry Peavy and Trust C

> Nuco Plastics, Inc., was developing production molds for Universal Plastics, Inc. During the course of the development of the molds, Universal changed specifications and required the use of different materials. Nuco raised the price from $235 per 1,000 p

> Steel Industries, Inc., ordered steel from Interlink Metals & Chemicals. The steel was to be delivered from a Russian mill. There were political and other issues in Russia, and the mill was shut down. Inter- link did not deliver the steel to Steel Indust

> Westinghouse Electric Corporation entered into uranium supply contracts with 22 electric utilities during the late 1960s. The contract prices ranged from $7 to $10 per pound. The Arab oil embargo and other changes in energy resources caused the price of

> Bobby Murray Chevrolet, Inc., submitted a bid to the Alamance County Board of Education to supply 1,200 school bus chassis to the district. Bobby Murray was awarded the contract and contracted with General Motors (GM) to purchase the chassis for the scho

> ABCO (Abbott Development Company) made a note payable to Western State Bank of Midland. The FDIC took over Western State ’ s operations after it failed. ABCO had defaulted on the note, after which the FDIC permitted ABCO Homes to refinance the note, maki

> On January 3, 1991, Central District Alarm (CDA) and Hal-Tuc entered into a written sales agreement providing that CDA would sell and install new security equipment described on an equipment list attached to the contract. This list included a Javelin VCR

> Roland Staemphfli was employed as the chief financial officer of Honeywell Bull, S.A. (HB), a Swiss computer company operating exclusively in Switzer- land. Staemphfli purportedly arranged financing for HB in Switzerland through the issuance of promissor

> In 1992, Donna Smith telephoned Clark, the man- ager of Penbridge Farms, in response to an advertisement Clark had placed in the July issue of the Emu Finder about the availability for sale of proven breeder pairs. Clark told Smith that he had a breeder

> Economy Forms Corp. sold concrete-forming equipment to Kandy. After using the equipment for more than six months, Kandy notified Economy that the equipment was inadequate. Economy Forms alleged that Kandy had accepted the goods. Kandy denied liability. W

> Sara Bostwick hired Christian Oth, Inc., to be her wedding photographer. The parties’ written contract granted ownership of the copyright in all images created to Oth. Oth posted the wedding photos on its Web site. Bostwick e-mailed Oth to remove the pho

> William Gurtler was president and a board member of Unichem Corp., which produced and sold chemical laundry products. While president of Unichem, he encouraged his plant manager to leave to join a rival business, which Gurtler was going to join in the ne

> Spaulding & Kimball Co. ordered from Aetna Chemical Co. 75 cartons of window washers. The buyer received them and sold about a third to its customers but later refused to pay for them, claiming that the quality was poor. The seller sued for the price. Wo

> Lafer Enterprises sold Christmas decorations to B. P. Development & Management Corp., the owners and operators of the Osceola Square Mall. The package of decorations was delivered to Osceola Square Mall prior to Thanksgiving 1986 for a total cost of $48,

> Brian Felley went to the home of Tom and Cheryl Singleton on June 8 to look at a used car that the Singletons had advertised for sale in the local paper. The car was a 1991 Ford with 126,000 miles on it. Following a test drive and the Singletons’ represe

> Drehman Paving & Flooring Co. installed a brick floor at Cumberland Farms that its salesman promised would be “just like” another floor Cumberland had installed several years earlier. The bricks in the new floor came loose because Drehman had failed to i

> In 1984, Alexander Tolin executed a will under which the residue of his estate was to be devised to his friend Adair Creaig. The will was prepared by Steven Fine, Tolin ’ s attorney, and executed in Fine ’ s office. Fine retained the original will and ga

> On July 27, 2000, Sheldorado Aluminum Products, Inc., installed an aluminum awning on the back of Marie Villette ’ s home for use as a carport. On January 11, 2001, the awning collapsed on top of Ms. Villette ’ s new Mercedes automobile. Ms. Villette bro

> After watching a male horse owned by Terry and Manita Darby perform at a horse show, Ashley Sheffield contacted the Darbys about buying him. The Darbys assured her that the horse had no problems and would make a good show horse for use in competition. In

> GE Oil & Gas, Inc., is a company that manufactures gas compressors. Berge Helene owns a large barge that it leases to oil companies for purposes of storing and producing petroleum offshore. GE Oil & Gas sold Berge Helene gas compressors that were to be u

> Brianna Kriefall, a child, died after she ate meat at a Sizzler restaurant that was later found to contain E. coli. Her family brought suit against Sizzler USA to recover for the loss of their daughter. Is Sizzler liable for the death? Explain your answe

> A complaint was filed with the U.S. Commerce Department’s ITA by U.S. telephone manufacturers AT&T, Comidial Corp., and Eagle Telephones, Inc., alleging that 12 Asian manufacturers of small business telephones, including the Japanese firms Hitachi, NEC,

> James Jelinek purchased Hytest BMR Sorghum Sudan grass seed, which was produced and marketed by Land O ’ Lakes. Land O ’ Lakes warranted the seed to be free from defects and expressly warranted that by using normal farming practices and proper maintenanc

> The majority shareholder and president of Dunaway Drug Stores, Inc., William B. Dunaway, was structuring and executing the sale of virtually all of the corporation ’ s assets to Eckerd Drug Co. While doing this, he negotiated a side noncompete agreement

> In a January 2000 prospectus for its initial public offering of shares, Apex Oil Discovery Co. (AODC) estimated a sizable volume of oil production based on the studies of two geologists and a test well at one of its Oklahoma properties. A cautionary stat

> G.C. Vincent was an employee of Porter County Development Corporation (PCDC). Vincent had three personal credit cards through Citibank. Vin- cent diverted checks to the PCDC, deposited them into his personal checking account, and issued checks drawn upon

> John Clark purchased a paintball gun at a pawn shop and then participated in a community sport of shooting paintball guns at cars. While John and his friend were riding around their small town with their paintball guns, they spotted Chris and shot his ca

> George Baxter executed a will that left the bulk of his estate to the Church of Christ in New Boston, Texas. Two members of the church served as the witnesses for the will. Is the will valid? [In re Estate of Gordon , 519 S.W.2d 902 (Tex.)]

> Advent purchased ink from Borden. On the labels of the ink drums delivered to Advent, Borden had imprinted in one-sixteenth-inch type in all caps: seller makes no warranty, express or implied, concerning the prod- uct or the merchantability or fitness th

> Andy ’ s Sales (owned by Andy Adams) sold a well-built trampoline to Carl and Shirley Wickers. The Wickerses later sold the trampoline to Herbert Bryant. While using the trampoline, Herbert ’ s 14-year-old nephew, Rex, sustained injuries that left him a

> Jane Jackson purchased a sealed can of Katydids, chocolate-covered pecan caramel candies manufactured by NestlT. Shortly after, Jackson bit into one of the candies and allegedly broke a tooth on a pecan shell embedded in the candy. She filed a complaint,

> Paul Parrino purchased from Dave ’ s Professional Wheelchair Service a wheelchair manufactured by 21st Century Scientific, Inc. The sales brochure from 21st Century Scientific stated that the wheelchair would “serve [the buyer] well for many years to com

> Maria Gonzalez lived in a rental unit with her sons in Queens, New York. The hot water supplied to their apartment was heated by a Morflo water heater, which had a temperature control device on its exterior manufactured by Robertshaw and sold to Morflo.

> Zogarts manufactured and sold a practice device for beginning golfers. According to statements on the package, the device was completely safe, and a player could never be struck by the device ’ s golf ball. Hauter was hit by the ball while using the devi

> Webster ordered a bowl of fish chowder at the Blue Ship Tea Room. She was injured by a fish bone in the chowder, and she sued the tea room for breach of the implied warranty of merchantability. The evidence at trial showed that when chowder is made, the

> Develop a chart for when a seller’s creditors can repossess goods in transit to a buyer.

> Equisure, Inc., was required to file audited financial statements when it applied for a listing on the American Stock Exchange (AMEX). Stirtz, Equi- sure ’ s auditor, issued a favorable audit opinion used for the AMEX application. Stirtz also issued “ cl

> Reebok manufactures and sells fashionable athletic shoes in the United States and abroad. It owns the federally registered Reebok trademark and has registered this trademark in Mexico as well. Nathan Betech is a Mexican citizen residing in San Diego, Cal

> Copenhaver wrote a will in ink, which was found with her other papers in her bedroom at her death. Pencil lines had been drawn through every provision of the will and the signature. There was no evidence as to the circumstances under which this had been

> J. C. Cowdin, a director of Curtis-Wright Co., phoned Robert Gintel, a partner of Cady, Roberts & Co., a stock brokerage house, and advised him that Curtis-Wright ’ s quarterly dividend had been cut. Gintel immediately entered orders selling Curtis- Wrig

> An insurer issued a settlement check on a claim brought by an injured minor that was payable to “ Trudy Avants attorney for minor child Joseph Walton, mother Dolores Carpenter 11762 S. Harrells Ferry Road #E Baton Rouge LA 70816. ” The lawyer indorsed th

> A note from Mark Johnson with HealthCo International as payee for $28,979.15 included the following language: payable in _________, Successive Monthly Installments of $ Each, and in 11 Successive Monthly Installments of $2,414.92 Each thereafter, and in

> William Rubin, president of Tri-State Mining Co., sought a loan from Bankers Trust Co. To secure the loan, he pledged worthless stock in six companies and represented that the stock was worth $1.7 million. He also arranged for fictitious quotations to ap

> Dubois sold Hocking a condominium that included an option to participate in a rental pool arrangement. Hocking elected to participate in the arrangement. Under it, the rental pool ’ s agent rented condominiums, pooled the income, and after deducting a ma

> International Advertising, Inc. (IA), would like to raise $10 million in new capital to open new offices in Eastern Europe. It believes it could raise the capital by selling shares of stock to its directors and executive officers as well as to its bank a

> Mary Dale worked in the law office of Emory Stone, an attorney practicing securities law. While proof- reading Mary ’ s keying of a document relating to the merger of two computer software companies, Emory joked to her, “ If I weren’t so ethical, I could

> Dorozhko hacked into the corporate network of Thomson Financial on October 17, 2007, at 2:15 P . M . and gained access to IMS Health ’ s soon- to-be-released negative earnings announcement due out at 5:00 P . M . He purchased $41,670 worth of put options

> Brown made an offer to purchase Overman’s house on a standard printed form. Underneath Brown’s signature was the statement: “ACCEPTANCE ON REVERSE SIDE.” Overman did not sign the offer on the back but sent Brown a letter accepting the offer. Later, Brown

> The following transactions in Heritage Cosmetics Co., Inc., stock took place: On January 21, Jones, the corporation ’ s vice president of marketing, pur- chased 1,000 shares of stock at $25 per share. On January 24, Sylvan, a local banker and director of

> Minnesota Prostate Research Labs, Inc. (MPRL), made an initial public offering of its shares in August 1998. It stated in its prospectus that research on laboratory animals indicated that the lab may have discovered a cure for prostate cancer in humans.

> Business Week magazine is sent to a national distributor of magazines, Curtis Circulations Co., which sells the magazines to various wholesalers, including Hudson News. Business Week publishes a column entitled “ Inside Wall Street, ” and the evidence sh

> Corporation A was involved in merger discussions with Corporation B. During this time, Corporation A made public statements denying that any merger negotiations were taking place or that it knew of any corporate developments that would account for heavy

> The Official Comment to § 3-420 states that delivery of an instrument occurs when it “comes into the payee’s possession, as for example when it is put into the payee’s mailbox.” Constructive delivery had occurred with the delivery to the mailbox. While C

> Lawrence D. Polizzotto, a former vice president at First Solar Inc., spoke in one-on-one phone calls with some analysts and investors. He stated that the company was unlikely to receive a much-anticipated loan guarantee from the U.S. Department of Energy

> Birt was a hospital patient. The doctor who treated him was a shareholder of a professional corporation organized under the Indiana Medical Professional Corporation Act. Birt claimed that the doctor who treated him was guilty of malpractice, and he sued