Legal and Ethical Scenarios
Read the scenarios and the questions that follow. Answer Scenarios.
You must also provide an answer for the recommendations section. Identify and analyze the legal issue(s). Apply legal concepts and make potential arguments as directed using laws, cases, examples, and/or other relevant materials.
Scenario 1 – Liability on Negotiable Instruments
Andrews and Brown hired a bookkeeper, Jenice, and gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice can pay employees’ wages and other company bills. Jenice decides to cheat her employers out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers $10,000 out of the Bayside account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money.
Evaluate which party or parties bear the loss.
Scenario 2 – Breach of Contract and Remedies
Andrews ordered 20 round tables to seat parties of two, 25 square tables to seat parties of four, 5 tables to seat larger parties and 175 chairs. The tables were specially ordered to contain the logo of the restaurant on the top of each table. Andrews paid for the entire shipment when placing the order; however, the supplier was responsible for making the shipping arrangements. The tables and chairs arrived three weeks later; however, five were scratched and damaged. Seven of the chairs were missing.
Analyze the restaurant’s options related to the damaged tables and missing chairs. Be sure to address the applicability of the UCC to the transaction.
Recommendations
Conclude your paper by justifying suggestions for [Restaurant Name] to help prevent future occurrences of these types of legal problems. Identify any ethical issues you find and present recommendations as applicable. Be specific in your recommendations.