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
the importance of a balanced capital structure and the problems which are associated with high levels of gearing

explain the significance of operating leverage and financial with the help of example?

The key parameters taken into account while rating a debt instrument are as follows: 1. Industry Evaluation - This involves an evaluation of the

what are the basic assumptions of financial management?

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

SEC Filings -Informational and financial DISCLOSURES required by SEC in order to comply with many sections of the Securities Act of 1933 and Securities and Exchange Act of1934. A n

What is Creative accounting Creative accounting (also termed as aggressive accounting or earnings management) distorts financial analysis of company accounts. Creative accounti

An introduction to the principles of banking and finance It covers a broad variety of topics using an economic perspective and aims to give a general background to any student

What is a marginal cost of capital schedule (MCC)?  Is the schedule all the time a horizontal line?  Explain. The MCC schedule is a graphic depiction of the weighted average cost

The financial ratios of a firm are given:     Current ratio    =  1.33   Acid-test ratio   =  0.80   Current liabilities  = 40,000   Inventory turnover ratio = 6    What is the