BS Law Exam II,Q3 - furniture had defects. Beth should have...

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BS Law Exam II, Q 3 James Tilley BAA 3210 Beth entered in to a guaranty agreement, this places her as second liable to pay the furniture bill. This means when Sue fails to pay her bill the furniture store would pursue Sue until all legal means of collecting funds from her were exhausted, then pursue Beth. Sue filed for bankruptcy several months after the purchase. Sue signed a security agreement that acted as collateral in the beginning of the loan, this ensured payment of the furniture. The fact that Beth filed for bankruptcy months back did not release her from the security agreement of the furniture. One important issue is the fact that the
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Unformatted text preview: furniture had defects. Beth should have contacted the furniture store and informed them of the defects. The store would replace or end the financial agreement between the two, provided that there was indeed a defect of the product and not because of Sue. If it could be proven that Sue caused the defect then she would remain responsible for the remainder of the balance of the furniture. Beth is not responsible for anything due to being the guaranty agreement. Sue’s responsibility relies on the cause of the defect whether she continues or ceases payments....
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This note was uploaded on 10/24/2011 for the course LAW BB3210 taught by Professor Profsantiago during the Spring '11 term at Columbia Southern University, Orange Beach.

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