Case Activities 2
Negotiability
In this case, Cory Babcock and Honest Air Conditioning & Heating purchased a new 2001 Chevrolet Corvette in September 2001 from Cox Chevrolet in Sarasota, Florida. The retail installment sales contract (RISC) stated that there were required monthly payments to be made until the balance of $52,516.20 was paid in full. There were other conditions imposed by RISC on the buyers and seller with respect to the payment for and handling of the Corvette. Cox then assigned the RISC to General Motors Acceptance Corp (GMAC) and in August of 2002, the buyers sold the car to Florida Auto Brokers, which they agreed to pay the balance due on the RISC. The check sent to GMAC for the balance due on RISC was dishonored due to insufficient funds though the vehicle’s title had already been forwarded prior to the check being dishonored. GMAC then filed a suit in a Florida court against Honest Air and Babcock for damages of $35,815.26 and breach of contract. The defendants argued that the RISC was a negotiable instrument and a ruling in their favor on this point would reduce any damages due to GMAC to less than the Corvette’s current value. The legal issue presented in this case is the requirements for an instrument to be negotiable. The question in this case is if the RISC meets the qualifications of a negotiable …show more content…
To pay for the business the Boudreaux’s borrowed money from Cabool State Bank where they signed loan documents and a financing statement that identified the Boudreaux’s as “Debtors.” On the financing statement the bank identified “D&J Enterprises, Inc., Radio Shack, Dealer, Debra K. Boudreaux, Michael C. Boudreaux: as “Debtors” as well as the statement covered in part, the store inventory. The Boudreaux’s changed the name of their business
Negotiability
In this case, Cory Babcock and Honest Air Conditioning & Heating purchased a new 2001 Chevrolet Corvette in September 2001 from Cox Chevrolet in Sarasota, Florida. The retail installment sales contract (RISC) stated that there were required monthly payments to be made until the balance of $52,516.20 was paid in full. There were other conditions imposed by RISC on the buyers and seller with respect to the payment for and handling of the Corvette. Cox then assigned the RISC to General Motors Acceptance Corp (GMAC) and in August of 2002, the buyers sold the car to Florida Auto Brokers, which they agreed to pay the balance due on the RISC. The check sent to GMAC for the balance due on RISC was dishonored due to insufficient funds though the vehicle’s title had already been forwarded prior to the check being dishonored. GMAC then filed a suit in a Florida court against Honest Air and Babcock for damages of $35,815.26 and breach of contract. The defendants argued that the RISC was a negotiable instrument and a ruling in their favor on this point would reduce any damages due to GMAC to less than the Corvette’s current value. The legal issue presented in this case is the requirements for an instrument to be negotiable. The question in this case is if the RISC meets the qualifications of a negotiable …show more content…
To pay for the business the Boudreaux’s borrowed money from Cabool State Bank where they signed loan documents and a financing statement that identified the Boudreaux’s as “Debtors.” On the financing statement the bank identified “D&J Enterprises, Inc., Radio Shack, Dealer, Debra K. Boudreaux, Michael C. Boudreaux: as “Debtors” as well as the statement covered in part, the store inventory. The Boudreaux’s changed the name of their business