Posted: April 24th, 2025

Business Finance – Accounting Assignment: “Issue Spotters” questions from the course textbook for chapters assigned this week

Assignment: 

“Issue Spotters” questions from the course textbook for chapters assigned this week

Assignment Overview:

Draft an original, two-to-three-sentece response to the “Issue Spotters” questions for all of the chapters in this week’s reading assignment. Citations are not required because the content must be based on knowledge acquired through reading the textbook and supplemental research using KU’s ProQuest.

Instructions and Submission Requirements

• Draft      responses to all questions in one document
• Number      each response correctly to match the textbook (for example, 1-1A)
• Double-space      the entire document
• Times      New Roman or Calibri font, size 12, all black must be used
• Content      is not to be formatted in any way (do not bold, underline, italicize,      alter colors, etc.)
• Save      the document as a DOC or PDF file
• Proofread,      use the SafeAssign Self-Assessment Originality Review, and edit before      submitting
• Click      on”Week 1 Chapter Assignment” (the blue link at      the top of the assignment page)
• A      “text submission box” will appear but do not type, copy, or      paste anything into the text box
• Instead,      click on the paperclip icon to attach/upload your DOC or PDF file
• Once      submitted, the file will run through SafeAssign and the Originality Report      will be included as part of the grading process
• Do      not worry about unusually high matching if you submitted your work through      the SafeAssign Self-Assessment
• High      matching is only an issue if the content in the Self-Assessment submission      was plagiarized and not revised
• Because      all work is self-generated and can be self-assessed prior to submission,      plagiarism cannot be an issue
• Therefore,      responses with a full sentence (or more) “matching” any      source will earn zero points due to lack of originality

Week 2 Chapter Assignment

Assignment: 

“

Issue Spotters

” questions from the course textbook for chapters assigned this week

Assignment Overview:

Draft an original, two-to-three-sentece response to the “Issue Spotters” questions for all of the chapters in this week’s reading assignment. Citations are not required because the content must be based on knowledge acquired through reading the textbook and supplemental research using KU’s ProQuest.

Instructions and Submission Requirements

· Draft responses to all questions in one document

· Number each response correctly to match the textbook (for example, 1-1A)

· Double-space the entire document

· Times New Roman or Calibri font, size 12, all black must be used

· Content is not to be formatted in any way (do not bold, underline, italicize, alter colors, etc.)

· Save the document as a DOC or PDF file

· Proofread, use the SafeAssign Self-Assessment Originality Review, and edit before submitting

· Click on”Week 1 Chapter Assignment” (the 
blue link at the top of the assignment page)

· A “text submission box” will appear but do not type, copy, or paste anything into the text box

· Instead, click on the paperclip icon to attach/upload your DOC or PDF file

· Once submitted, the file will run through SafeAssign and the Originality Report will be included as part of the grading process

· Do not worry about unusually high matching if you submitted your work through the SafeAssign Self-Assessment

· High matching is only an issue if the content in the Self-Assessment submission was plagiarized and not revised

· Because all work is self-generated and can be self-assessed prior to submission, plagiarism cannot be an issue

· Therefore, responses with a full sentence (or more) “matching” any source will earn zero points due to lack of originality

Chapter 17

Issue Spotters

1. Brad orders 150 computer desks. Fred ships 150 printer stands. Is this an acceptance of Brad’s offer or a counteroffer? If it is an acceptance, is it a breach of the contract? What if Fred told Brad that he was sending printer stands as an accommodation? (See 
Learning Outcome 2.)

HIDE ANSWER

A shipment of nonconforming goods constitutes an acceptance and a breach unless the seller seasonably notifies the buyer that the nonconforming shipment does not constitute an acceptance and is offered only as an accommodation. Without the notification, the shipment is an acceptance and a breach. Thus, here, the shipment was both an acceptance and a breach.

2. Smith & Sons, Inc., sells truck supplies to J&B, which services trucks. Over the phone, J&B and Smith negotiate for the sale of eighty-four sets of tires. Smith sends a letter to J&B detailing the terms. Smith ships the tires two weeks later. J&B refuses to pay. Is there an enforceable contract between them? Explain why or why not. (See 
Learning Outcome 2.)

HIDE ANSWER

Yes. In a transaction between merchants, the requirement of a writing is satisfied if one of them sends to the other a signed written confirmation that indicates the terms of the agreement, and the merchant receiving it has reason to know of its contents. If the merchant who receives it does not object in writing within ten days after receipt, the writing will be enforceable against the merchant even though they had not signed anything.

Chapter 18

Issue Spotters

1. Adams Textiles in Kansas City sells certain fabric to Silk & Satin Stores in Oklahoma City. Adams packs the fabric and ships it by rail to Silk. While the fabric is in transit across Kansas, a tornado derails the train and scatters and shreds the fabric across miles of cornfields. What are the consequences if Silk bore the risk? If Adams bore the risk? (See Learning Outcome 4.)

HIDE ANSWER

Buyers and sellers can have an insurable interest in identical goods at the same time. If the buyer (Silk & Satin) bore the risk, it must pay and seek reimbursement from its insurance company. If the seller (Adams Textiles) bore the risk, it must seek reimbursement from its insurance company and may still have an obligation to deliver the identified goods (the fabric) to Silk & Satin.

3. Paula boards her horse, Blaze, at Gold Spur Stables. She sells the horse to George and calls Gold Spur to say, “I sold Blaze to George.” Gold Spur says, “Okay.” That night, Blaze is kicked in the head by another horse and dies. Who pays for the loss? (See Learning Outcome 3.)

HIDE ANSWER

George (the buyer) suffers the loss of the goods (Blaze, the horse). If a bailee—in this case, the stable—holds goods for a seller (Paula), and the goods are to be delivered without being moved, the risk of loss passes when the bailee (the stable) acknowledges the buyer’s (George’s) right to possess the goods (Blaze). The stable acknowledged George’s right to possess the horse when the stable said, “Okay,” in response to Paula’s call about the sale.

Chapter 19

Issue Spotters

1. Mike agrees to sell one thousand espresso makers to Jenny, to be delivered on May 1. Due to a strike, Mike can only deliver the espresso makers two hundred at a time over a period of ten days, with the first delivery on May 1. Does Mike have the right to deliver the goods in five lots? Explain. (See 
Learning Outcome 1.)

HIDE ANSWER

Yes. Normally, goods must be tendered in a single delivery, but the parties can agree otherwise, or the circumstances may be such that either party can rightfully request delivery in lots. The seller’s (Mike’s) proposal to work around the strike seems reasonable.

2. Pic Post-Stars agrees to sell Ace Novelty five thousand posters of celebrities, to be delivered on April 1. On March 1, Pic tells Ace, “The deal’s off.” Ace says, “I expect you to deliver. I’ll be waiting.” Can Ace sue Pic without waiting until April 1? Why or why not? (See 
Learning Outcome 1.)

HIDE ANSWER

Yes. In a case of anticipatory repudiation, as in this problem, a buyer (Ace) can resort to any remedy for breach even though the buyer told the seller (Pic)—the repudiating party in this problem—that the buyer would wait for the seller’s performance.

Chapter 20

Issue Spotters

1. Molly tells Nick that she will pay him $10,000 to set fire to her store, so that she can collect the money from her fire insurance policy. Nick sets fire to the store, but Molly refuses to pay him. Can Nick recover the $10,000 from Molly? Why or why not? (See Learning Outcome 2.)

HIDE ANSWER

No. This contract, although not fully executed, is for an illegal purpose and therefore is void. A void contract gives rise to no legal obligation on the part of any party. A contract that is void is no contract. There is nothing to enforce.

3. Alison receives a notice of property taxes due from the local tax collector. The notice is for tax on Jerry’s property, but Alison believes that the tax is hers and pays it. Can Alison recover from Jerry the amount that she paid? Why or why not? (See Learning Outcome 2.)

HIDE ANSWER

Yes. A person who is unjustly enriched at the expense of another can be required to account for the benefit under the theory of quasi contract. Alison and Jerry did not have a contract, but the law will impose one to avoid the unjust enrichment.

Chapter 21

Issue Spotters

1. Top Electronics, Inc., advertises GEM computers at a low price. Top keeps only a few in stock and tells its sales staff to switch consumers attracted by the price to more expensive brands. Top tells its staff, “If all else fails, refuse to show the GEMs, and if a consumer insists on buying one, do not promise delivery.” Has Top violated a law? Explain your answer. (See Learning Outcome 1.)

HIDE ANSWER

Yes. The Federal Trade Commission (FTC) has issued rules to govern advertising techniques, including rules designed to prevent bait-and-switch advertising. Under the FTC guidelines, bait-and-switch advertising occurs if the seller refuses to show the advertised item, fails to have in stock a reasonable quantity of the item, fails to promise to deliver the advertised item within a reasonable time, or discourages employees from selling the item.

2. Sweet Candy Company wants to sell its candy in a normal-sized package labeled “Gigantic Size.” Fine Fabrics, Inc., wants to advertise its sweaters as having “That Wool Feel,” but does not want to specify on labels that the sweaters are 100 percent polyester. What stops these firms from marketing their products as they would like? (See Learning Outcome 2.)

HIDE ANSWER

A number of federal and state laws deal specifically with information given on labels and packages. These laws include the Fair Packaging and Labeling Act and the Nutrition Labeling and Education Act.

Chapter 22

Issue Spotters

1. Jim owes Sherry $700. Sherry asks Jim to sign a negotiable instrument regarding the debt. Which of the following, if included on that instrument, would make it negotiable: “I.O.U. $700,” “I promise to pay $700,” or an instruction to Jim’s bank stating, “I wish you would pay $700 to Sherry”? Explain why. (See 
Learning Outcome 2.)

HIDE ANSWER

“I promise to pay $700” would make the instrument negotiable. “I.O.U. $700” or an instruction to Jim’s bank stating, “I wish you would pay $700 to Sherry,” would render the instrument nonnegotiable. To be negotiable, an instrument must contain an express promise to pay. An I.O.U. is only an acknowledgment of indebtedness. An order stating, “I wish you would pay,” is not sufficiently precise.

2. Hector Caldwell gets his paycheck from his employer, indorses the back of the check by signing his name, and goes to cash it at his credit union. On the way, he loses the check. Paige finds the check. Has the check been negotiated to Paige? How might Hector have avoided any loss? (See 
Learning Outcome 4.)

HIDE ANSWER

Yes. When Hector signed the back of his check, he converted it to a bearer instrument, which anyone can cash. Because a bearer instrument can be negotiated by delivery alone, the check was negotiated to Paige (the finder). Hector could have avoided this loss by indorsing the check with a restrictive indorsement, such as “For Deposit Only.” If he had done that, the check could not have been cashed but only deposited into his credit union account. In addition, Hector could simply have waited until he reached the credit union’s teller counter before indorsing the check.

Chapter 23

Issue Spotters

1. Adam issues a $500 note to Bill due six months from the date issued. One month later, Bill negotiates the note to Carol for $250 in cash and a check for $250. To what extent is Carol a holder in due course of the note? (See Learning Outcome 1.)

HIDE ANSWER

Carol is a holder in due course (HDC) to the full extent of the note. One of the requirements for becoming an HDC is taking an instrument for value. A party may attain HDC status to the extent that they give value for the instrument. Paying with cash or with a check is giving value.

2. Roy signs corporate checks for Standard Corporation. Roy makes a check payable to U-All Company, to whom Standard owes no money. Roy signs the check, forges U-All’s indorsement, and cashes the check at First State Bank, the drawee. Does Standard have any recourse against the bank for the payment? Explain your answer. (See Learning Outcome 2.)

HIDE ANSWER

No. When a drawer’s employee (Roy) provides the drawer (Standard Corporation) with the name of a fictitious payee (U-All Company), a forgery of the payee’s name is effective to pass good title to subsequent transferees. Standard Corporation cannot recover funds from First State Bank for Roy’s forgery.

Chapter 24

Issue Spotters
1. Adams Textiles in Kansas City sells certain fabric to Silk & Satin Stores in Oklahoma City. Adams packs the fabric and ships it by rail to Silk. While the fabric is in transit across Kansas, a tornado derails the train and scatters and shreds the fabric across miles of cornfields. What are the consequences if Silk bore the risk? If Adams bore the risk? (See Learning Outcome 4.)

HIDE ANSWER
Buyers and sellers can have an insurable interest in identical goods at the same time. If the buyer (Silk & Satin) bore the risk, it must pay and seek reimbursement from its insurance company. If the seller (Adams Textiles) bore the risk, it must seek reimbursement from its insurance company and may still have an obligation to deliver the identified goods (the fabric) to Silk & Satin.

2. Paula boards her horse, Blaze, at Gold Spur Stables. She sells the horse to George and calls Gold Spur to say, “I sold Blaze to George.” Gold Spur says, “Okay.” That night, Blaze is kicked in the head by another horse and dies. Who pays for the loss? (See Learning Outcome 3.)

HIDE ANSWER
George (the buyer) suffers the loss of the goods (Blaze, the horse). If a bailee—in this case, the stable—holds goods for a seller (Paula), and the goods are to be delivered without being moved, the risk of loss passes when the bailee (the stable) acknowledges the buyer’s (George’s) right to possess the goods (Blaze). The stable acknowledged George’s right to possess the horse when the stable said, “Okay,” in response to Paula’s call about the sale.