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. Rate of the growth of the business? The working capital requirement of the a concern increase with the growth and expansion of the business activity although it is difficu

type of assets for ppt from t.y.bom com student in commerce department in financial management

If invested 2500 in a bank that pays 1% annually. How long will it take for the funds to double?

Illustration  Find out the value of zero-coupon bond when maturity value is Rs.1,00,000, discounting rate is 12%, and the period is 25.  Then,

Explain the Advantagesand disadvantages of MBO Advantages of MBO Disadvantages of MBO Sale can be arranged quickly   Manag

Define the meaning of Overtrading When  a  company  is  trading  at  a  very  fast  pace,  it  would be  generating  sales  on  credit  with  speed, so have a large volume of t

Question 1: i) Activity Based Costing is better than the Traditional Product Costing. Discuss, by making use of empirical evidence ii) The replacement of cash-based accounti

1. It is mandatory that every carrier transporting hazardous materials should display correctly the emergency information panel. Emergency information panel should be legibly and

Interest Rates The payment borrowers make for the use of the funds that they borrow and the payment that lenders demand for the use of the funds they lend (termed interest ) w

Definition of 'Beta' A measure of the volatility or systematic risk of a security or a portfolio in difference to the market as a whole. Beta is needed in the capital asset pri