Business Law Question

Research Project Essay and Discussion: Hi-Value Shoe Store

The Scenario

Mary is the sole owner of Hi-Value Shoe Store, a small business located in a suburban working-class community. She inherited the business from her Aunt Marty three years ago. Up until then, business had been slow because of the declining economy. Lately, however, business has picked up, and revenues have doubled because of an increase in employees at the neighboring manufacturing plant. The plant recently received a valuable contract from the federal government to produce bulletproof vests.

As a result of the increase in business, Mary hired two new full-time employees but was short on the funds necessary for expansion of the business. Mary was able to obtain a loan from Community Bank, but the bank required a security interest and that Mary be personally liable on the note. The language of the security agreement contained the following clause: “The note is secured by the inventory of Hi-Value Shoe Store, currently owned and any later acquired inventory, until said note is fully paid and satisfied.” The bank immediately perfected the security interest by filing a financing statement.

Mary decided to purchase inventory from ABC Wholesale Suppliers (ABC) on credit a few weeks after obtaining the loan from the bank. She took possession of the inventory on April 16. ABC required that she sign a promissory note and security agreement, with the inventory being listed as collateral.

For at least one year, Mary was able to make payments on both obligations from the proceeds of the business. Unfortunately, the manufacturing plant lost its government contract and eliminated 50% of its workforce over a six-month period. As a result, Mary’s business lost customers and began to operate at a loss. It became unable to pay its obligations to both the bank and ABC and ended up defaulting on both loans.

Both secured parties sought to repossess the inventory from Mary’s store, sell the inventory, and then hold Mary personally liable for any deficiency. Mary, aware that she might be held personally responsible for the debt, considered declaring bankruptcy.

Instructions

  • After reading the scenario, write an essay responding to the questions below.
  • To answer the questions, please conduct research beyond the textbook from this course – for example, utilize Web sources, resources at your public library, and your professional networks.
  • Your essay should be a two-page document that you will upload to this discussion board.
  • Post your essay in the discussion board no later than the due date (listed in the top-right corner of this discussion page.

Questions

  1. Discuss and determine which secured party has a priority under UCC Article.
  2. Assume that the shoe store has sold some of the inventory to Lindsay, a college student. Would the secured parties be able to repossess the shoes from Lindsay?
  3. What affect would Mary’s filing of Chapter 7 bankruptcy have on the UCC Article 9 foreclosure process?
Essay Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.