Identify the parties by name that have an obligation, Financial Management

Identify the parties by name that have an obligation:

a. Buyer/Alpha hears a rumor that the toys have not been manufactured according to the expected specifications for such toys and that many of the toys crack and that the dyes rub off onto children's hands. The units have already been shipped and are on the high seas. Buyer's Bank/Commerce has received a properly endorsed Bill of Lading and the draft to pay under the LC along with all the other required documents. Buyer/Alpha seeks to stop payment for breach of contract and fraud and desperately is calling its Bank and sends a fax to Buyers Bank/Commerce demanding that his Bank stop payment due to breach of contract. Explain whether Buyer's Bank should or should not honor Buyer's request to stop payment.

b. Seller's Bank/Midland receives the properly endorsed Bill of Lading but notices that the draft is made payable to "Santa Clause" instead of "Santa Claus". Seller's Bank/Midland realizes this is a spelling mistake. But it still refuses to honor the draft for payment. Explain why you agree or do not agree with Seller's Bank‘s position referencing the appropriate provisions of the UCP.

c. From the very beginning, Buyer/Alpha was concerned about Seller/Santa Claus's ability to perform under the contract, so Buyer required Seller to obtain a Standby Letter of Credit in the amount of $21,000. Seller obtained the SLC from its bank/Midland payable to Buyer/Alpha. Buyer now invokes the SLC and demands payment from Sellers Bank/Midland. Should Midland pay Buyer/Alpha?

Posted Date: 2/14/2013 6:59:54 AM | Location : United States

Related Discussions:- Identify the parties by name that have an obligation, Assignment Help, Ask Question on Identify the parties by name that have an obligation, Get Answer, Expert's Help, Identify the parties by name that have an obligation Discussions

Write discussion on Identify the parties by name that have an obligation
Your posts are moderated
Related Questions
Q. Equity Method of Accounting? Equity Method of Accounting - Investors cost basis is adjusted up or down (according to the % of stock ownership) as investee's retained earning

#question.After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C

What was the first argument against traditional approach The first argument against traditional approach was based on its emphasis on issues relating to procurement of funds by

Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio

formula and explanation for Gordon''s dividend capitalization method

Q. What do you mean by Business Risk? Business risk is that portion of the unsystematic risk caused by the operating environment of the business. Business risk arises from the

What are the assumptions of MM(Modigliani Miller) approach?

Dual Aspect Concept - Accounting Principle This is, no doubt, the basic concept in accounting.  Under this concept, each transaction has got a two-fold aspect: (i) yielding

The fundamental principle is that when a tree is used to value an on-the-run issue, the resulting value should be arbitrage free i.e., it should be equal to the o