business law for commercial transactions, Business Law and Ethics

(These are short answer assignments; just a few paragraphs for each part is all that is required)

Assignment 1: Discussion Questions
In this assignment, you will research and apply legal requirements related to sales contracts, warranties and remedies. You will also continue to develop the company created in Week 1.

Discussion Question Part 1
Select ONE of the scenarios below and explain the best
solution. Include comments related to any ethical issues that
arise.

Scenario 1

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.
• Use the Internet to locate the FTC provision that regulates consumer credit transactions.
• 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.
• Describe Brittney’s duty to examine her bank statement and report alterations to First Bank.
• How much, if any, can First Bank charge Brittney’s account?
• If Brittney files a lawsuit, will the debt she owes Jason be relevant?

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.
• Acceptance of checks
• Post dated checks
• Prevention of forgery (internal employees)
• Dishonored (returned checks)
• Acceptance of payment by electronic means, such as Internet sales
• Gift cards
• Issuing credit to customers

(Reference for Question Part II)
Business created in week 1:
If I were top select one of the three principle forms of business organizations and create a business that sells at least one tangible product or provides a service I would choose an individual proprietorship. A sole or individual proprietorship is a form of business ownership in which one individual owns the business, and I like the idea of being the boss. As the owner I would be the sole worker of the business in the beginning, starting out small and then employ as many others as needed.
My business would sell homemade and man-made personal items such as candles, and woodwork, I am sure I would also resale items I could find at wholesale prices also, even if just to keep my shelves stocked. My business would go by the name Angel’s Inspirations. The principal office, for my convenience, would be located somewhere close to my home on the gulf coast of Mississippi. I would be proud to be the sole proprietor of a business in which I could make a living out of crafting and resale.
Advantages of this form of organization include no organizational fees, full control over all decisions, and less taxes. The disadvantages include unlimited personal liability and possible resource limitations. Another advantage can be found with the lack of legal requirements for the formation of a sole proprietorship in the state of Mississippi. First a name is required, and then licenses, permits, and necessary zoning clearance, and then an employer identification number is required.
Works Cited:
Smith, S. (2013). How to Establish a Sole Proprietorship in Mississippi. In Nolo. Retrieved May 19, 2013, from https://www.nolo.com/legal-encyclopedia/how-establish-sole-proprietorship-mississippi.html
Twomey, D. (2013). Anderson''s Business Law and the Legal Environment, Comprehensive Volume (22nd ed). Cengage Learning. Retrieved from https://digitalbookshelf.southuniversity.edu/books/9781285696683/id/L41-2-2

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