The required components for each question include: Title page Issue for Question
ID: 443124 • Letter: T
Question
The required components for each question include:
Title page
Issue for Questions 1-4
The Applicable Rules for Questions 1-4
The Application of the Rules for Questions 1-4 to the fact pattern in Questions 1-4
The Conclusion (the answer to the question asked in Questions 1-4)
References
APA Format
This method is called the "IRAC" analysis. For this assignment you will need to have 1 title page and 1 reference page. Please note that for each question you will need to provide a separate "IRAC" Analysis. Please provide a separate heading for each question (ie. Question 1 IRAC). Make sure that you include the Issue, Rule, Application of the Rule and the Conclusion for each question. Also make sure that you label them so that I know when you are discussion the Issue, Rule, Application of the Rule, and the Conclusion for each question. Incomplete analysis of questions will result in a deduction of points.
Due Sunday at Midnight
Alpha Corporation orders office equipment from Best Products, Inc., which has an unperfected security interest in the equipment until it is paid for. Meanwhile, Alpha takes out a loan from Capital Credit, Inc., subject to a security interest in Alpha’s building and equipment, which Capital perfects. Alpha files a bankruptcy petition under Chapter 7. If the petition is granted, in what order will Alpha’s creditors be paid?
Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1, adjustable-rate mortgage, with an initial interest rate of 4.0 percent for three years and potential increases of up to 3.0 percent to a cap of 11.0 percent. Before the loan is completed, the lender discloses the amount of the loan principal, the initial interest rate, the initial annual percentage rate, and associated fees and costs. Not disclosed are material details about the amounts of the payments when the interest rate changes. Before the first increase takes effect, Sierra decides that she wants to rescind the loan. What is a “twenty-year, 3/1, adjustable-rate mortgage”? Can Sierra rescind this loan? Why or why not?
Adam contracts with Beth to buy a certain restaurant, Coffee Café, for Beth, who asks Adam not to reveal her identity. Adam makes a deal with Dina, the owner of the restaurant, and makes a down payment. Beth fails to pay the rest of the price, and does not pay Adam for his services. Does Adam have any recourse against Beth? If so, on what basis and to what extent?
Pete’s Pizza employs Quincy as a delivery driver. Pete’s guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a delivery, Quincy is caught in a traffic jam. To deliver the pizza within the thirty-minute time limit, Quincy drives onto a sidewalk and hits Ruth, a pedestrian. Is Pete’ s liable to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?
Explanation / Answer
Question 1
Issue
The issue in the given case is that out of the two creditors, which creditor should be paid first in case of bankruptcy filed by the company taking loan?
Rule
The rule that is to be used in the given case is that of Bankruptcy Code.
Application
In the given case company Capital has secured perfected security interest in the building and equipment of the company that took loan. On the other hand company Best has secured unperfected security interest in the office equipment of the company that took loan.
The bankruptcy code establishes a priority that makes the creditors with perfected security with highest priority as compared to creditors with unperfected security.
Conclusion
Thus, in the given case the company Capital will be paid first as it had secured perfected security and the company Best will paid last as it has secured unperfected security as per the code of Bankruptcy.
Question 2
Issue
The issue in the case is that what a “twenty year, 3/1, adjustable-rate mortgage means? Can S be able to rescind the loan?
Application
Any loan requires a fixed time period that is required to pay the entire amount of principal and interest. An Adjustable Rate Mortgage (ARM) required a certain time period during which a certain amount of rate would be charged. After a certain period the rate would change.
Under the 3/1 rule a certain amount of rate would be charged for a period of 3 years. In the given case a rate of 4 percent would be charged for a period of 3 years and thereafter there would be an increase of 3 percent and a total of 7 percent interest would be charged.
A maximum of 11 percent of interest could only be charged by the lender.
Conclusion
In the given case S cannot rescind the loan as the time to rescind the loan is only three days as per the rule of Right to Rescind. Once the time period expires a person cannot rescind the loan. Thus, maximum of three day time is given to an individual in order to rescind the loan.
Question 3
Issue
Does A have an alternative to take action against B for non-payment of the fee for services?
Rule
The contract law and breach of trust can be used in the given case.
Application
In the given case B has made a contract with A to buy a certain restaurant. A arranged the restaurant for B. B made an initial down payment for the restaurant and failed to pay the rest of the amount. At the same time B also failed to pay A the money for the services as per the contract.
Conclusion
Thus, as per the Contract Law, A can sue B for violation of the Contract between them and can make B to pay for the services.
Question 4
Issue
Will P be responsible to the injuries caused to the pedestrian R by Q who was working under P?
Is Q liable for the injuries suffered by R?
Rule
Under the law of torts, master is generally held liable for the injuries in case the servant is working under the guidance of the master and carrying out the work as per the instructions.
Application
The law of torts holds the master liable for the action of the servant. Q was working under the instructions of P, in order to supply the Pizza within the time limit of half an hour. The urgency on part of Q was due to the time limit set by company run by P.
Q would have been liable for the injuries in case Q was not carrying out the duties and the injuries suffered by R were due to rash driving of Q while not being on duty.
Conclusion
Thus, P should be held liable for the injuries caused to R as Q was working under the instruction of P to supply the Pizzas within the time limit of half an hour, which resulted in the occurrence of the accident.