Reference no: EM13147386

1. Briggs signed a note that read in part as follows: "Ninety Days after date, I, we or either of us, promise to pay to the order of Three Thousand Four Hundred Ninety-Eight and 45/100-Dollars." The words and symbols in italic were typed, and the rest of the words were preprinted. No blanks had been left on the face of the instrument; any unused space had been filled in with hyphens. The note contained several clauses that permitted acceleration in the event the holder deemed itself insecure. When the note was not paid at maturity, Broadway Management Corp. bought suit on the note for full payment, claiming that it (Broadway) was a holder.

A) Is this an order or bearer instrument?
B) Is this a negotiable instrument? If so why? If not, why not?
C) Suppose that the signer of the instrument signed the note on a line marked debtor. Under the line appeared two other signatures. The wording in the note remains the same. Would the people who signed under the line be primarily liable on the note or would they stand in a surety or guarantor position?

2. Evan Smith experienced a heart attack in the emergency room of Baptist Memorial Hospital after being given a dose of penicillin for a sore throat. Smith sued the attending physician as well as the hospital. The hospital called itself a full-service hospital with emergency room facilities. Baptist Memorial did not consider the doctors to be its agents. For tax and accounting purpose the doctors were not treated as employees of the hospital. Based on this information, discuss whether the doctors who treated patients in the emergency room were agents of the hospital.

3. Justin Jones suffered from genital herpes and sought treatment from Dr. Steven Baisch of Region West Pediatric Services. A nurse assistant, Jennifer Hallgren, who was a Region West employee, told her friends and some of Jones's friends about Jones's condition. This was a violation of the Region West employee handbook, which required employees to maintain the confidentiality of patients' records. Jones filed suit in a federal district court against Region West, among others, alleging that Region West should be held liable for its employee's actions on the basis of Respondeat Superior. On what basis might the court hold that Region West was not liable for Hallgren's acts? Discuss fully.

Multiple Choice: Choose your answer from those provide and EXPLAIN the legal reasons for your choice. Each question is worth one point.

1) Ben contracts with Cary to fix her roof, and Cary writes Ben a check, but Ben never makes the repairs. Ben transfers the check to Devin, who knows that Ben breached the contract, but cashes the check anyway. Devin cannot attain HDC status as regards to
a. any defense Cary might have against payment.
b. only any personal defense Cary might have against payment.
c. only Ben's breach, which is Cary's personal defense against payment.
d. none of the above

2) Luke borrows $5000 from Modern Financial Corporation (MFC), which files a financing statement on May 1, but does not sign an security agreement until he receives the funds on May 5. Luke also borrows $5,000 from National Bank, which advances funds, file a financing statement, and signs a security agreement on May 2. Luke uses the property as collateral for both loans. On Luke's default, in a dispute over the collateral, MFC will

a) lose because National perfected first.
b) lose because National's interest attached first.
c) win because MFC file first.
d) win because MFC's interest attached first.

3) Ira and Jill agree to act as guarantors on a loan made by Ken. Ken defaults on the payments and Jill refuses to pay. If Ira pays the debt, he can recover from
a) Ken and Jill under the right of reimbursement.
b) Ken and Jill under the right of proportionate liability.
c) Ken under the right of subrogation and Jill under the right of contribution.
d) neither Ken or Jill.

4) Dora and Ed make down payments on goods to be received from Fine Furniture Store. Before the goods are delivered, Fine files bankruptcy. Besides consumers like Dora and Ed, Fine owes wages to its employees and taxes to the government. The order in which these debts will be paid is
a) consumer deposits, unpaid wages, and taxes.
b) taxes, consumer deposits, and unpaid wages.
c) unpaid wages, consumer deposits, and taxes.
d) unpaid wages, taxes, and consumer deposits.