Read the call-of-the-question carefully, and follow the instructions for each subject. Prepare four briefing papers using the APA format for research papers
Briefing Paper 1: Critical Legal Thinking
•Read Murphy Oil USA, Inc. synopsis -- Cheeseman text page 285-286 13.8 Guaranty Contract .
•There is no need to read the case. Determine how your business would protect itself from a discharge of the debt identified in the case..
•Brief the facts of the case and assume your boss is seeking your opinions as on the discharge issue - argue both sides of the issue..
Briefing Paper 2: Law Case with Answers
•Read Deficiency Judgment -- Cheeseman text page 268.
•Determine whether your jurisdiction (state) has an anti-deficiency statute..
•Brief the facts of the case and assume your boss is seeking your opinions on the efficacy of anti-deficiency statue when your business is in the position of the First Bank in the example; argue both sides of the issues presented..
Briefing Paper 3: Critical Legal Thinking Cases
•Read Sections 13.4 Discharge - (p. 285); 12.8 Risk of Loss- (p. 263); 12.5 Limited Warranty- (p. 262); and 13.3 Bankruptcy - (p. 284-285).
•Check the decisions of the highest appellate courts, if a case is cited, for each fact pattern..
•Brief the facts of the case and assume your boss is seeking your opinions on whether each of the four subjects affect business in the United States and if so, provide the worst and best case scenarios..
Briefing Paper 4: Ethics Case
•Read Section 13.10 Ethics - Cheeseman text page 286.
•Brief the facts of the case and assume your boss is seeking your opinions on the 3 questions found at the end of Section 13.10. Argue both sides of all issues..
1. Murphy Oil: Murphy Oil agreed to supply Price Oil with petroleum product in 1997. The contract included a signed agreement by E.M.Armstrong and F. Armstrong to guarantee payment to Murphy Oil if Price Oil did not pay for the products delivered and sold to Price Oil. In December 2005 Murphy delivered petroleum products to Price Oil for nearly $260,000. Price Oil did not pay for the delivery and went into bankruptcy where it eventually paid out $66,246.28 for the claim by Murphy Oil to the bankruptcy court. That left $193,339.47 owed by the Armstrong's for the balance. They did not pay. They also did not respond to the court hearing. The debt remains unpaid as of the court date where the judgment was for a summary judgement in favor of Murphy Oil.
In this case, the Armstrong's signed a guarantee of payment in case the business did not pay. This is sometimes a good move for the people, but in this case, the company went bankrupt leaving the personal guarantees in place. Individuals should be careful about guaranteeing business debts because businesses, when they fail, usually do so because of too much debt, leaving the individuals to meet the guarantee. Risk is often greater than the value of return, even if the company is new and needs the help of the owners/investors. If an agreement of this type is created, it should have a limit on time, long enough for the company to establish credit, but not so long as to risk the individual's financial responsibility.
Businesses, on the other hand, are prudent to get a signed back up agreement for the same reasons. Businesses fail. The ability to collect, even in bankruptcy court is minimal and assurances of collection from owners as guarantors helps businesses recover more than allowed in bankruptcy decisions.
2. In Florida, mortgages must be foreclosed by filing a lawsuit in court. As in any lawsuit, the borrower must be served with notice of the lawsuit and must be given an opportunity to appear and defend his or her rights. The lender will try to show that the borrower is in default, and that foreclosure is therefore necessary under Florida equity law. Florida is unusual in that the legislature has passed very few statutes regulating foreclosures. Most of the law on the subject of foreclosures in Florida is found scattered in dozens of cases. The basic statute, chapter 702.01 reads as follows: <br /><br />All mortgages shall be foreclosed in equity. In a mortgage foreclosure action, the court shall sever for separate trial all counterclaims against the foreclosing mortgage. The foreclosure claim shall, if tried, be tried by the court without a jury. After the sale takes place, the sale terms must be confirmed by the court that ordered the sale. If the terms of the sale order are met, title in the buyer's name can become complete by filing a certificate of title. At the discretion of the court, junior lien holders can redeem the property, up to the time of the confirmation of the sale. The equity of redemption is cut off when the sale is confirmed, but it exists prior to that time, which means the borrower can save the property from foreclosure by coming up with the money before confirmation. <br /><br />Lenders can sue for any deficiency, and that would include the first and second ...
Review of the facts of the cases presented in the assignment.