Using the two scenarios listed below and explain the best solution
for each. Include comments related to any ethical issues that arise. You
should locate at least one scholarly source from the SUO Library or one
case that has been decided or is currently pending to support your
answer.
Scenario 1 – Holders and Holders in Due Course
Greg sold Mitch a fishing boat for $8,500, maintaining to Mitch that
the boat was in excellent condition. Mitch gave Greg a check for $8,500,
which Greg endorsed and gave to Denise in exchange for a debt he owed
her. When Mitch took his friends out on the boat, he discovered that the
boat leaked, needed to be painted, and required a new motor. Mitch
stopped payment on the check, which had not yet been cashed.
1. Describe the status of Greg and Denise as holders or holders in due course.
2. Can Denise recover from Mitch as a holder in due course? Discuss
Scenario 4 – Consumer Protection
Suntan Enterprises (Sun), was a distributor of a product known as
Sunless Tanning Tablets. The tablets allowed consumers to achieve a tan
without exposure to the sun. When ingested, the tablets gave color to
the skin through the use of various ingredients, one of which is
thaxanthin, a coloring agent. The Food and Drug Administration (FDA) had
not approved the use of thaxanthin as a coloring additive. The FDA
became aware that Sun was selling the tablets. The FDA filed a lawsuit,
seeking forfeiture of the tablets in the possession of the company. Sun
challenged the FDA’s right to seize the tablets.
1. Explain the arguments for each party and make a ruling as to which party
should win supported by applicable law and/or course materials.
FYI:
Please read instructions carefully textbook chapters and pdf scholary and cases articles are uploaded along with citations. To find case law
information is also uploaded.
Textbook :
Twomey, D.P., Jennings, M. M., & Greene, S. M. (2017).Anderson’s business law and the legal environment, comprehensive volume (23rd ed.). Mason, OH: Cengage Learning. ISBN 13: 978-1-305-57508-0
