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If you haven’t already, review the Overview for the module, read the reading assignments, and listen to the presentations/lectures. Answers can be found in the text and lectures.

These are three short essay questions. Answers can be found in the course resources. (Do not use outside resources to answer these questions.) They are due on Sunday night by 11:55pm.

Please use bullet points if appropriate. For example, if a question asks for three things, use this format to answer –

  1. First point.
  2. Second point.
  3. Third point.

___________________________________________________________________

Question #1 (5 points):

JoJo Parachutes is seeking to buy silk from Ivory Road Limited. List and explain the basic and other principles of contract formation they will want to follow under UCC Article 2, including the writing and enforceability requirements, and how they will handle additional and different terms. Do not worry about the merchant exception here.

Question #2 (5 points): 

Andrew Enterprises received a promissory note from J&J Limited. List (in bullet points) the six things Andrew will look for to determine if the note is negotiable? Explain why each of these requirements are necessary.

Question #3 (5 points): 

Hometown Bank has loaned $1,000,000 to AquaTaste to purify, bottle, and market store-bought drinking water from the Ohio River. AquaTaste has put up its purification equipment as collateral. If you were the loan officer for Hometown, how would you go about protecting the Bank’s investment? Hint: there are two main steps, with three substeps to the first step and three ways to perform the second step.

 

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