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Andy signed a negotiable note to Scott's Appliance Store to purchase a refrigerator for his home. The note contained all of the notices required by the Federal Trade Commission. The refrigerator did not 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.
•Does the FTC regulation apply to this case? Will Andy be required to pay the amount owed on the refrigerator to Alliance Appliances? •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 required 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, but 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 noticed the improper payment and informed First Bank of the alteration.
Discussion Question Part II Select four of the six topics from the list. In two to three paragraphs, provide information about how your new business will handle issues related to the topics. Justify your selection with relevant laws, cases or examples.
•Issuing credit to customers
Complete and annex the Self and Peer Assessment.
INTRODUCTION TO BUSINESS LAW
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