Devry University MGMT 597 Week 8 Final Exam (Version 3) - $25.49   Add to cart

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Devry University MGMT 597 Week 8 Final Exam (Version 3)

Page: 1 (Essay Questions) Question (TCO A, C) Kenneth hired a real estate agent named Barbara to sell a condominium he owned in New York. The asking price for the modest two-bedroom unit was $1,300,000. Kenneth told Barbara he would go as low as $1,100,000, but no lower, but that she should try to get as high a price as possible. If he couldn’t get that much for it, he said he would use it as rental property. A good friend of Barbara’s was in the market for a two-bedroom condominium in New York. In fact, this friend had come to Barbara to help her find a place and negotiate for it. Barbara’s friend said that she could absolutely not spend more than $1,000,000. When Kenneth hired Barbara to sell his condominium, Barbara told her friend about it and the asking price. Barbara told her friend, “Don’t even bother…….. Barbara then proposed to her friend that they go in together, with Barbara fronting some money through her friend, but not having Barbara’s name on the contract as purchaser. Before they could work out the details, Barbara’s friend received a raise and decided to buy the condominium. Barbara negotiated a price of $1,100,000 on Kenneth’s behalf. Kenneth later found out that Barbara had told her friend about his bottom price, and about the plan for Barbara to help buy the house. What claims, if any, does Kenneth have? (Points : 50) Question (TCO B, D) At Super Car Outlet, Joan was negotiating with Marge for the purchase of a used car. Marge told Joan that she would fix any problems with the drivetrain that arose in the first 1,000 miles. After further negotiation, they signed a written agreement that provided that the sale was made “as is, without any warranties.” After driving the car for 400 miles, the antilock brake system failed. Marge denied having made the repair promise. But she said she would cover $200 of the repair costs. Joan then took the car ….. repaired at a cost of $487. Joan now wants to recover the full repair costs from Marge. Marge refuses to pay any amount. Discuss the issues that would arise in this case. (Points : 50) Question (TCO E, H) Determine whether the following instrument is a negotiable instrument, addressing all the requirements of negotiability in your response. I, James Wyatt, promise to pay $12,000 to Buck’s Bikes in four equal installments of principal, beginning on January 1, 2011, and on the same day in each of the next three years. Each payment will consist of $3,000 in principal, plus interest accrued since the date of this note, in the case of the first payment, or since the prior payment in the case of all other payments…….. This note is secured by collateral consisting of various machines. This note may ….. paid in whole or in part prior to the due dates, and the interest accrued will …. reduced accordingly. The due date for any payment under this note …… extended by mutual agreement of the parties up to six months from the due date as stated herein. The proceeds of this note will …. used by James Wyatt to further his experiments, and in the event those experiments are unsuccessful, the payment obligation is canceled. (Points : 50) Page: 2 (Essay Questions) Question (TCO F, G) Little Oil is an oil-drilling company that has defaulted on several of its loans. Giantoil Oil Refining is owed $230,000 on a loan that is secured by some of Little Oil’s drilling equipment. This equipment is worth around $180,000. Giantoil has repossessed the equipment pursuant to its security agreement and has notified Little Oil that it proposes to keep the equipment rather than sell it. Little Oil does not want Giantoil to keep the equipment and wants it to …. sold. Discuss the legal issues in this situation. (Points : 50) Question (TCO C, D, G) Fred is a director of the ALLSTAR Corporation, which is engaged in the business of creating and marketing toys and games. A proposal is made to the board to manufacture and market a toy bird that really flies. Market surveys have ….. done to indicate that the toy would be a good seller, and engineering studies have ….. done testing the feasibility of such a product. Fred reviews this information and votes in favor of producing this new toy. The vote was 7 to 4 in favor. ALLSTAR produces and markets this new toy bird, but sales are very slow. After several years of losing money, ALLSTAR discontinues this toy. Tina, a shareholder of ALLSTAR, thinks the toy bird venture was a waste of time and money. In fact, she thinks the idea was so bad that she sues Fred for breach of his fiduciary duty of due care in making the decision to proceed with the bird. Discuss the general standards …….. in this situation.(Points : 50) Question (TCO D, H) Mark is a CPA in a large city who audited the financial statements of a firm that sold specialized computer equipment around the world. This was a complex audit, and Mark prepared numerous working papers in connection with the audit. Mark also had numerous conversations with client personnel in his efforts to understand the complex transactions and accounts. Mark’s client has recently become the subject of an investigation for numerous violations of law. Charges will soon …….. subject to a subpoena? (Points : 50)

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