Fact Pattern 24-2ACommodity Sales Corporation and Resource Purchasing Company enter a contract for a sale of unprocessed silver. Commodity Sales draws a draft unconditionally ordering Resource Purchasing to pay $50,000 to Commodity Sales's order in sixty days. Resource Purchasing signs and dates the draft.Refer to Fact Pattern 24-2A. On this instrument, Commodity Sales is
Fact Pattern 24-2ACommodity Sales Corporation and Resource Purchasing Company enter a contract for a sale of unprocessed silver. Commodity Sales draws a draft unconditionally ordering Resource Purchasing to pay $50,000 to Commodity Sales's order in sixty days. Resource Purchasing signs and dates the draft.Refer to Fact Pattern 24-2A. This instrument is
Petra signs a check payable to Quincy, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is
Quincy signs a check payable to Richland Investors, Inc., and gives it to Richland, leaving the amount blank but authorizing Richland to fill in the check for $1,000. Richland fills in $1,459 and negotiates the check to Silverado Bank, to whom Richland owes $1,459. Silverado Bank, an HDC, can enforce the check for
Fact Pattern 26-1ASeymour writes a check on his account at Platinum Bank to Teri to pay a debt. Teri negotiates the check by indorsement to Rosanna, who presents it for payment to Onyx Bank.Refer to Fact Pattern 26-1A. If Onyx Bank dishonors the check, Rosanna can obtain payment from Teri
Bing signs a note payable to the order of Cameron. Cameron indorses the note and gives it to Daphne as payment for a debt. Daphne presents it to Bing, who pays it. Bing's payment discharges
Chris convinces Dion, who does not understand English, to sign a $1,000 note that Dion believes is an application for a credit card. Chris negotiates the note to EZ Finance Company. Dion
Ethel signs a note "payable to the order of Fidelity Bank." Fidelity indorses the note in blank and negotiates it to Ghani, who sells it to Huck. Liability associated with the transfer of the note from Ghani to Huck is
Dandy Lyin' Furniture Store borrows $100,000 at 6 percent interest from Easy Loan Company and signs a promissory note for that amount. Easy changes the amount of the note to $120,000 and increases the rate to 8 percent. Easy materially altered the note when it changed
Pippi, the manager of Quik Mart, deposits the store's receipts in its account at Regional Bank. As to the receipts, the relationship between Quik Mart and the bank is
Daisy writes a check to Elvita on her account at First Savings Bank. The bank dishonors the check even though Daisy has sufficient funds in her account. The bank is
Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delmar Bank to pay for his current semester's textbooks. The bookstore deposits the check in its account in Evergreen Bank. Like most checks, this check is
Khali's debt to Lew is past due. Lew obtains a judgment against Khali to collect the debt, but Khali refuses to pay. Lew asks the court to order Khali's employer to pay a portion of Khali's paycheck to Lew. This is a request for
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
Fact Pattern 28-1BChocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll. Dayna, president and owner of Chocolate! Chocolate!, asks Evermore Credit Union to loan the funds to Chocolate! Chocolate!Refer to Fact Pattern 28-1B. Generally, for a contract between Evermore and Dayna with respect to liability for Chocolate! Chocolate!'s loan to be enforceable, it must be in writing if Dayna is
Roni, a debtor, wants to confirm the amount of her outstanding secured debt with Swifty Loan Corporation. Roni can ask Swifty to confirm her view of the debt, without charge, every
Quantum Financial Corporation is a secured party with a security interest in property owned by Revolving Sales Company. Perfection of this security interest may not protect Quantum against the claim of
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1 million from Helpful Finance Corporation for a security interest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the equipment. GLC defaults on the loans. B15. Refer to Fact Pattern 29-2B. Suppose that Helpful perfects its security interest when GLC takes possession of the equipment. In that circumstance, the party with priority to the collateral on GLC's default would be
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