Questions from Business Law

Q: Melco, Inc., issued a promissory note for $12,

Melco, Inc., issued a promissory note for $12,000, payable to the order of Marjorie. On the back of the note, Charles had signed the following statement: “For and in consideration of funds advanced he...

Q: Arnold and Palmer signed two promissory notes for a total of $

Arnold and Palmer signed two promissory notes for a total of $25,000 payable to the Banking Co. The two men argued that they were not liable on the notes because they had signed as agents for Sunshine...

Q: One of Doris’s job responsibilities at Winkie, Inc .was preparing

One of Doris’s job responsibilities at Winkie, Inc .was preparing company checks for the president, Willie, to sign. Using Winkie’s check-signing machine, Doris forged $150,000 of checks on her emplo...

Q: When Steven was killed in an automobile accident, he left his

When Steven was killed in an automobile accident, he left his wife, Debra a life insurance policy for $60,000. She decided to move from Bunkie to Sulphur, Louisiana. Debra executed a document authoriz...

Q: Recall the Quimby case. This type of fraud is increasingly common

Recall the Quimby case. This type of fraud is increasingly common. What could Quimby have done to protect himself?

Q: Penelope purchased securities offered by Hughes Homes, Inc., which sold

Penelope purchased securities offered by Hughes Homes, Inc., which sold manufactured housing. During its audit, Deloitte found that the internal controls of Hughes had flaws. As a result, the account...

Q: The British Broadcasting Corp. (BBC) broadcast a TV program

The British Broadcasting Corp. (BBC) broadcast a TV program alleging that Terry Venables, a former professional soccer coach, had fraudulently obtained a £1 million loan by misrepresenting the value o...

Q: An off-duty, out-of-uniform police officer

An off-duty, out-of-uniform police officer and his son purchased some food from a 7-Eleven store and were still in the parking lot when a carload of teenagers became rowdy. The officer went to speak...

Q: Medtrans, an ambulance company, was unable to pay its bills

Medtrans, an ambulance company, was unable to pay its bills. In need of cash, it signed an engagement letter with Deloitte to perform an audit that could be used to attract investors. Unfortunately,...

Q: Wayne and Arlene Selden invested in Competition Aircraft, a fraudulent company

Wayne and Arlene Selden invested in Competition Aircraft, a fraudulent company that pretended to sell airplanes. After the company went bankrupt, the Seldens sought to recover from accountant William...