Ask Financial Management Expert

Timothy Allen commissioned a custom motorcycle from Indy Route 66 Cycles, Inc., based inIndiana. Indy built it and issued a “Certificate of Origin.” Later, federal law enforcement officersarrested Allen on drug charges and seized the Indy-made cycle from the garage of Allen’s sisterTena. The government alleged that the cycle was subject to forfeiture as the proceeds of drugtrafficking. Indy filed a claim in a federal district court against the government. Indy argued that itowned the cycle, as evidenced by the “Certificate of Origin,” which the company still possessed.Indy claimed to have been keeping the cycle in storage. The government asserted that the cycle hadbeen delivered to Allen and filed a motion to strike.The court granted the motion to strike. Under UCC 2–401(2)], “title passes to the buyer at thetime and place at which the seller completes his performance with reference to the physical deliveryof the goods.” Testimony by Indy’s former vice president Vince Ballard was “inconclusive.” Ballardimplied that Indy delivered the cycle to Allen and asserted that Indy kept it in storage. But the cyclewas found in Tena Allen’s garage. This “strongly indicates that claimant delivered it to Allen. As in many cases, there may have been unstated reasons for the court’s decision against Indy in thiscase. When asked whether Indy inquired into the occupations of its customers, the seller said no,because if it did, it would likely lose half of them. In response to queries about the price of Allen’scustom cycle, Indy gave different answers at different times. The seller was also not clear on howmuch the buyer still owed on the price. When asked how long the cycle had been in storage, Indyprovided a date that fell after the cycle had been seized by law enforcement officers.

Should the passage of title be tied so closely to the possession of the goods? Discuss.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92852307

Have any Question?


Related Questions in Financial Management

Assignment problems1 on the day harry was born his parents

Assignment Problems 1. On the day Harry was born, his parents put $1600 into an investment account that promises to pay a fixed interest rate of 5 percent per year. How much money will Harry have in this account when he ...

1 activities of a company that require the spending of cash

1) Activities of a company that require the spending of cash are known as: A) Uses of cash. B) Cash on hand. C) Cash receipts. D) Sources of cash. E) Cash collections. 2) Relationships determined from a firm's financial ...

Module discussion forumto prepare for this discussion

Module : Discussion Forum To prepare for this discussion, review "Basics of Speechwriting" and "Basics of Giving a Speech" in textbook Chapter 15. Then watch this video of Apple founder and CEO Steve Jobs giving the 2005 ...

Launching a new product linefor this portfolio project

Launching a New Product Line For this Portfolio Project Option, you will act as an employee in a large company that develops and distributes men's and women's personal care products. The company has developed a new produ ...

Question 1 discuss valuing bonds and how interest rates

Question : 1) Discuss valuing bonds and how interest rates affect their value. Also consider the importance of the yield-to-maturity (YTM). 2) Discuss common stocks and preferred stocks. Also, which common stock valuatio ...

Introductionlast week you determined the root causes of the

Introduction Last week, you determined the root cause(s) of the problem you are trying to resolve for your final paper. As a reminder, the decision you are working on is the one that you selected in week two. This week, ...

You have owned and operated a successful brick-and-mortar

You have owned and operated a successful brick-and-mortar business for several years. Due to increased competition from other retailers, you have decided to expand your operations to sell your products via the Internet. ...

You will be conducting an interview with a market research

You will be conducting an interview with a market research professional or a company representative. Use the results of your research to make specific recommendations on how market research can be applied to the Marketpl ...

Question 1 what is marketing research what are the two

Question 1: What is marketing research? What are the two primary types of research? Question 2: What factors influence marketing research? Question 3: The role of statistics in business decision-making? Assignment : Sele ...

Chapter 74 for commercial banks what is meant by a managed

Chapter 7 4. For commercial banks, what is meant by a managed liability? What role do liquid assets play on the balance sheet of commercial banks? What role do money market instruments play in the asset and liability man ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As