Words versus Figures. Eugene Kindy, a seller of diesel engine ...

[theo]

Words versus Figures. Eugene Kindy, a seller of diesel engine parts, agreed to buy four diesel engines from Tony Hicks for 13,000. Kindy transferred 6,500 by wire and issued a check for the remainder. Kindy placed two different amounts on the check because he did not want the check honored until Hicks had delivered the engine parts. Using a check-imprinting machine, Kindy imprinted 5,500 on the check in the space where the dollar amount is normally written in words, but he wrote 6,500 in figures in the box usually reserved for numbers. An employee of Galatia Community State Bank, noticing the discrepancy, altered the figures to read 5,500, initialed the change, and accepted the check. The check was returned to Galatia by First National Bank at Kindy's request because Hicks had not delivered the engine parts. In the litigation that followed, a key issue was whether the machine-imprinted figure took precedence over the handwritten figure. What should the court decide on this issue? Discuss.

Question 2

An at-will employee:
 a. may not be dismissed for any reason
  b. may only be dismissed for committing a major crime
  c. may only be dismissed for certain reasons specified in the employment contract d. may be dismissed at any time without reason or cause
  e. none of the other choices are correct

[kaylee05]

Answer to Question 1

Words versus figures
The court held that Galatia Bank was entitled to rely on the imprinted section of the check. UCC 3-114 indicates that words control figures unless the words are ambiguous, and handwritten terms control typewritten and printed terms, and typewritten control printed. The question here was whether handwritten figures control printing. The court explained that the purposes of the U.C.C. are best served by considering an amount imprinted by a checkwriting machine as words' for the purpose of resolving an ambiguity between that amount and an amount entered upon the line usually used to express the amount in figures. The court reasoned that a prime purpose, as we see it, of making a sum payable when expressed in words controlling over the sum payable expressed in figures is the very fact that words are much more difficult to alter. The perforated imprinting by a check-writing machine, while expressing the sum payable in figures, is even more difficult to successfully alter than a sum payable in written words. Because a check imprinting machine's purpose is to protect against alterations, the amount shown on the imprint should control whether the number is in words or figures.    We think, however, that the purposes of the U.C.C. are best served by consider-ing an amount imprinted by a checkwriting machine as words' for the purpose of resolving an ambiguity between that amount and an amount entered upon the line usually used to express the amount in figures. The court also indicated that a portion of a check written by a checkwriting machine should be considered the equivalent of handwriting. (The court found the issue relevant only as far as it helped to determine whether Galatia Bank had notice of any consistency and thus whether the bank could qualify as a holder in due course of the check. Ultimately, the court held that a conflict among handwritten, printed and typewritten terms does not constitute notice of a claim or defense and concluded that the bank was a holder in due course and could recover against Kindy.)

Answer to Question 2

d

[theo]

YES! Correct, THANKS for helping me on my review

[carojassy25]

Excellent