Business Law II
This activity requires you to assay and assay acknowledged issues and accomplish recommendations based on one or added actuality patterns.
Facts: World Greenery, Inc. (Greenery) is a backyard and garden articles company. Greenery articles backyard seeds and chemical-free bulb sprays to advertise to retailers throughout the country.
Greenery additionally operates 2 retail garden accumulation stores, and a administration warehouse. The accomplishment plant, retail food and barn are all amid in the accompaniment of Oz.
In accession to accomplishment products, Greenery buys ample orders of food from Chem-Free, Inc., Farmers’ Seed ‘N Grow Company, Martin’s Mulch, Neville’s Nursery, US Pottery, and several alternative companies, on a approved basis. Most orders are delivered to Greenery, again billed ton a account base with balances due in 30 days.
In 2002, Greenery took a mortgage for 1 architecture that houses 1 of its 2 retail stores. Greenery owes $450,00 on that mortgage. In 2008, Greenery took addition mortgage for its additional retail abundance architecture on which it still owes $400,000. National Bank holds both these mortgages. All all-important cardboard appointment was appropriately filed to absolute National’s mortgages on anniversary of the 2 abundance barrio in 2002 and 2008, respectively.
Greenery took out a mortgage on its accomplishment bulb in 2001. Central Bank holds the mortgage on which $100,000 is owed. All all-important cardboard appointment was appropriately filed to absolute Central’s mortgage interest.
Greenery leases its administration barn amplitude from Barn Rentals, Inc. Greenery pays $800 hire on a account base to Barn Rentals, Inc.
Greenery has a accommodation with ABC Bank on which Greenery owes $350,000. The accommodation money was acclimated for start-up costs to body its additional retail store. ABC did not book paperwork perfecting its anchored interest.
Greenery accustomed a new accommodation for $75,000 to pay for food for its accomplishment plant, and for account for its 2 retail stores. Greenery’s abundance account is purchased account from suppliers, again confused out through abundance sales continuously. ABC filed accomplishment affidavit for the anchored transaction.
1. Would you accept brash ABC Bank to admission the new accommodation of $75,000 to Greenery for inventory, with OR afterwards an afterwards acquired account clause? Why?
2. Assume Greenery absitively to abutting all its business operations and cash all its business interests. Greenery currently owns assets, including equipment, inventory, vehicles, etc. accretion $1,000,000.
At the time Greenery bankrupt its business operations, it owed the following:
Chem-Free, Inc.: $475
Farmers’ Seed ‘N Grow Company: $500
Martin’s Mulch: $700
Neville’s Nursery: $3500
US Pottery: $600
National Bank: $450,00
National Bank: $400,000
Central Bank: $100,000
ABC Bank: $350,00
ABC Bank: $75,000
(a) List the antecedence of creditors.
(b) Explain why/how anniversary creditor listed has a antecedence interest, if any, in
3. Discuss the administration of assets to creditors and explain how abundant anniversary creditor would be accepted to accept against its debt interest.
Third being autograph is required. Third being agency that there are no words such as “I, me, my, we, or us” (first being writing), nor is there use of “you or your” (second being writing).
Contractions are not acclimated in business writing, so you are accepted NOT to use contractions in autograph this assignment.
When using a antecedent document, the apprehension is that the advice is cited and referenced with a folio or branch number.
Order a unique copy of this paper