Clark_11e-AM-Ch28.doc

Clark_11e-AM-Ch28.doc - C HAPTER 2 8 C REDITORS RIGHTS AND...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
221 C HAPTER 28 C REDITORS ’ R IGHTS AND R EMEDIES A NSWERS TO Q UESTIONS AT THE E NDS OF THE C ASES CASE 28.1—(PAGE 577) THE ETHICAL DIMENSION Should some persons be exempt from garnishment orders? Explain. There are persons whom it would seem unethical or at least unfair to subject to garnishment orders. The mentally and physically disabled and their caregivers, the single parent head of a poverty-level household with children, and elderly individuals with limited incomes are examples. THE LEGAL ENVIRONMENT DIMENSION Building contractors and subcontractors are typically classified as independent contractors. Could payments to these parties also fall within the definition of “earnings” applied in this case? Discuss. Yes. Any compensation for personal services would fall within the definition. Of course, payments to contractors might include reimbursement for building materials and other supplies, but a garnishment order could be appropriately drafted to except such amounts. CASE 28.2—QUESTIONS (PAGE 580) 1A. How significant should the court have found the omission of the word personal from the guaranty? Explain your answer. Kennedy argued that this omission was important, but the court did not discuss it except to “conclude that the guaranty Kennedy executed was unambiguously a personal guaranty, notwithstanding the fact that the word ‘personal’ does not appear in the document.” Given the reasoning of the court in this case, it seems unlikely that the omission of this word would have an effect on the interpretation of such a guaranty in any case. 2A. If Hene had misled Kennedy into believing he was signing the guaranty only in his capacity as an officer of JSV might the result in this case have been different? On this point, the court stated, “Even if we were to consider this im- plied claim of fraud, Hene correctly notes that where the parties are not in a fiduciary
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
222 UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY relationship, one contracting party has no right to rely upon the statements of the other as to the character or contents of a written instrument.” A NSWERS TO Q UESTIONS IN THE R EVIEWING F EATURE AT THE E ND OF THE C HAPTER 1A. Artisan’s lien Under New Mexico law it is understood that materials for a plane would include parts provided in repair services, but not fuel, oil and oxygen that are consumed in the use of the plane. Executive Aviation had no right to seize the plane; it was not in its possession. 2A. Judicial liens A writ of attachment is a court-ordered seizure and taking into custody of property prior to the securing of a judgment for a past-due debt; a writ of execution is used after a judgment is obtained and a court order to secure the property is received. 3A.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/11/2010 for the course MGT 301 taught by Professor Pederson during the Fall '10 term at SUNY Stony Brook.

Page1 / 6

Clark_11e-AM-Ch28.doc - C HAPTER 2 8 C REDITORS RIGHTS AND...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online