Business Law

Exam 2 Part 2 Fall II 2016 MGMT 56060.31

Student: ____________________________________________________________________ Instructions

Exam 2 is a take home open-book exam. You must submit your completed exam to me electronically through Turnitin. A file has been created in the Week Eight Module in Canvas for you to submit Part Two of your completed exam. Both Parts One and Two must be submitted no later than 11:59 p.m. on MONDAY December 5. Exams returned after that time and date will receive NO credit.

Type out your complete answer to the Short Answer and Short Essay questions. DO NOT repeat the question with your answer, but list only the number of the question with your answer. The maximum originality score for Part Two is 15%. Part Two of Exam Two has 17 Short Answer questions worth 2 points each and two final Short Essay questions worth 8 points each for a total of 50 points.

Short Answer : (2 points each)

1. Discuss the UCC's treatment of third party title and ownership rights to property obtained from a seller who did not have good title to the property.

2. Emily operates a distillery in Louisville, Kentucky. On November 5, 2016 Emily entered into a contract to purchase 300,000 bushels of corn from Sasha. At the time Emily enters into the contract, Sasha has already harvested his corn crop and is storing the corn at a commercially- operated grain silo in Davenport, Iowa. The grain silo is owned and operated by Ted. The contract instructs Emily that she should pick up her purchase of corn at the grain silo, and may take delivery after November 15. Emily arranges for her trucks to pick up the corn on November 18. On November 17, the First Bank of Davenport executes a court judgment awarded to the bank against Sasha for her default on a bank loan and seizes all of the corn Sasha had stored in Ted's grain silo. Both Emily and the Bank claim right to the 300,000 bushels of corn. Emily files a lawsuit asking the court to order Bank to turn over the corn to her. You are the judge. What is your decision? Explain your answer.

3. Boris operates a deer meat processing business. Natasha entered into an agreement with Boris to purchase deer meat for her customers who operate restaurants specializing in locally produced seasonal foods and game. Boris is not sure of the quantity of processed deer meat he will be able to provide to Natasha because his supply of deer depends upon the success of his suppliers during deer hunting season. Because of this uncertainty, Natasha agrees to purchase Boris' entire

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output of processed deer meat so that she can meet her customers' needs. During the deer season Boris processes twice the amount of deer meat than he had processed the previous year. Natasha refuses to take delivery and pay for the entire quantity of dear meat that Boris tendered to her claiming that the amount is far greater than what she has purchased from Boris in the past. Is Natasha required to purchase all of the deer meat tendered by Boris? Explain your answer.