Please read question below and answer or discuss. Minimum 230 words
Question: Paul Stieger gave his Chevy Chase Bank credit card to a Ms. Garrett during a business trip. He told her to use the card only for a car rental and for hotel lodging. After Stieger returned from the trip, he found that Garrett had used his card for 15 charges other than car rental and hotel lodging. For 13 of the charges, Garrett signed Stieger's name; for the other two, she signed her own name. Is Stieger liable for the 15 charges?© BrainMass Inc. brainmass.com October 25, 2018, 8:50 am ad1c9bdddf
The main issue with this case is the Truth in Lending Act. This act was established in 1968, and serves to protect both consumers and creditors. As part of this act, the consumer is only responsible for the first $50 of charges when fraud is involved. This was designed to protect the credit worthiness of consumers who are victims of credit card fraud. This law has been pushed to the front line in recent years, due ...
This solution discusses the legal case of Paul Stieger and his Chevy Chase Bank card. All pertinent legal elements are thoroughly discussed.
Detailed Accounting Discussion: Series of Questions
1. Georgia Lazenby believes a current liability is a debt that can be expected to be paid in one year. Is Georgia correct? Explain.
7. (a) What are long-term Liabilities? Give two examples.
(b) What is a bond?
8. Contrast these types of bonds: (a) Secured and unsecured. (b) Convertible and callable.
19. Valentin Zukovsky says that liquidity and solvency are the same thing. Is he correct? If not, how do they differ?
BE10-1: Kananga Company has these obligations at Dec. 31: (a) a note payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability.
BYP11-10: Greenwood Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months have been a real cash drain on the company, however, as profit margins have been greatly narrowed by increasing competition. With a cash balance sufficient to meet only day-to-day operating needs, the president, Gil Mailor, has decided that a stock dividend instead of a cash dividend should be declared. He tells Greenwood's financial vice-president, Vicki Lemke, to issue a press release stating that the company is extending its consecutive dividend record with the issuance of a 5% stock dividend. "Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend," he orders. "Just watch our stock rise when we announce the stock dividend; it must be a good thing if that happens."
(a) Who are the stakeholders in this situation?
(b) Is there anything unethical about President Mailor's intentions or actions?
(c) What is the effect of a stock dividend on a corporation's stockholders' equity accounts? Which would you rather receive as a stockholder - a cash dividend or a stock dividend? Why?