Author Question: Ann wrote a 500 check to Art as a deposit on Art's 240Z car. The memo section of the check read: ... (Read 66 times)

mydiamond · **on:** Jun 24, 2018

Ann wrote a 500 check to Art as a deposit on Art's 240Z car. The memo section of the check read: Deposit on 1978 240Z car of Art Mole. Sale price 4500. Art initialed the memo section. When Ann returned the next day with the remaining 4000, Art said, Sorry, I sold the car for 4,000 cash yesterday and sent your check back. The cheapest 240Z Ann can find is 5200. What are Ann's rights? Discuss the following: a. Was a contract formed? b. Are there statute of frauds problems? c. Could Ann collect damages? If so, what?

Question 2

The business judgment rule holds directors liable for:
A) errors in business judgment.
B) their mistakes.
C) failure to obtain necessary information for making decisions.
D) None of the above

joewallace · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

a. There was a contract.
b. The check and memo satisfy the statute of frauds.
c. Art did Ann a big favor by returning the check. Ann's damages:
5200
-4500
700 plus incidental damages

Answer to Question 2

C