Please use the IRAC method when drafting your answers. Read each question carefully and thoughtfully. All the information that you need to draft a quality answer can be found in your textbook.
1. On the back of an envelope, Clark writes, “I promise to pay Dobie or bearer $700 on demand. [Signed] Clark.” What type of instrument is this? Is it negotiable? If not, why not?
2. Discount Retail Warehouse Corporation pays its employees every two weeks. Ethel, a Discount Retail employee, receives her paycheck and indorses the back (“Ethel Smith”), but loses the check before cashing it or depositing it. Garth finds it. Has the check been negotiated to Garth? If Garth signs the back of the check beneath Ethel’s signature, can he cash it? If so, what might Ethel have done to avoid the loss?
3. Equity Credit Company has in its possession an instrument dated May 1, 2014. The instrument is payable to the order of First Choice Moving & Storage Company “on June 1, 2015,” for $5,000. In the upper left corner is an address for Greater Metro Development Corporation—10 Corporate Park Avenue, Chicago, Illinois—and in the lower right corner is the signature of “Hilltop Investments, Inc., By Ida, President.” In the lower left corner is stamped “ACCEPTED: Greater Metro Development Corporation by John, President, May 5, 2014.” On the back is the signature of “First Choice Moving & Storage Company by Kathleen, President.” Who, if anyone, is primarily liable on this instrument on May 1? On May 5? Who, if anyone, is secondarily liable on this instrument?
4. Bertha owns land located outside Centre City. Bertha sells the land to Disposal & Recycling, Inc., which establishes a hazardous waste disposal facility at the site. Disposal & Recycling accepts only waste transported by Eco Trucking Inc. exclusively from Federated Industries, Inc. Several years later, Disposal & Recycling closes its facility and sells the land to Garden Variety Retail Corporation, which builds a Home & Yard store on the site. Meanwhile, some of Centre City’s citizens complain to the Environmental Protection Agency (EPA) that the city’s municipal water supply is polluted. The EPA investigates and discovers that the sources of the pollution are leaks of hazardous waste from what is now the Home & Yard site. The EPA cleans up the site. Who can be held liable for the cost of cleaning up the site? What standards must Centre City meet regarding the water?
5. Fruit-of-the-Plant Seed Company is engaged in the agricultural seed industry in the Midwest. The firm currently has about 40 percent of the market for these products. GreatGro Seed Corporation competes with Fruit-of-the-Plant in the same states. Carbonate has about 35 percent of the market. If Fruit-of-the-Plant were to acquire the stock and assets of GreatGro, would Fruit-of-the-Plant be in violation of any of the antitrust laws? If so, which one? Discuss fully.