You’re On the Jury (2 Juries for a total of 40 points)There will be posted in the Discussions a fact scenario that relates to the material in the textbook and handouts. A series of questions will be posted with this scenario. Each student who participates in this discussion can receive up to 15 points per scenario for the answers and 5 points for the response. Participation is defined as posting one’s comments or answers to the questions in the assigned forum and responding in any forum. Have a discussion please. If you wish to respond in a different forum, you’ll first have to post a short introduction and then you can see the threads in that forum. “Yes” or “No” or “I agree” is not an answer nor is it a response. I’m looking for developed answers that include an analysis of the scenario in relationship to the content of the textbook. A response is a comment to someone so please indicate whose post you are responding to and develop your answer. I don’t know the context for your response if I don’t know who, by name, you are responding to. The statement, “I agree with you”, doesn’t tell me who as all I see is a string of names. The following is from a student who posted a long response but really didn’t say anything: “ I agree with all of the examples and such that you gave. The examples you gave from the book are very good and are actually substantial. I agree with your viewpoints as well. I would be in favor of Samantha in this situation as well for the reasons you had said and other reasons listed in my post. Overall, great post! Keep up the good work!” What did this student say besides “I agree with you”?There must be at least one reference to chapter/page/lecture note in a student’s discussion . If a student chooses not to participate, no points will be received. Minimal participation will yield partial points. You may find that some student(s) who posted prior to you may have covered the points you wanted to cover. Explore the material to see if there isn’t something additional to add or a new perspective. Perhaps you can explore the “opposition” side. I’m looking for analysis using the scenario facts and the materials in the text and online – there is no right or wrong answer – it’s how you discuss and support your position that’s critical. However, an incorrect application of the material, e.g., a tort concept in a breach of contract action without adequate support will result in some point deductions. Remember, there are always different ways of looking at things. There is a certain amount of vagueness in the facts of each scenario to allow for different perspectives. Students will be divided into groups according to the first letters of their last names. (Jury 1 A-C for example). Each group will be assigned a different scenario. Please monitor Canvas’s Discussion to see which Scenario/Group you have been assigned to. While a response can be posted in any forum following the directions above, the initial post must be submitted in the assigned forum. If the forum gets to large because students outside the forum post to the initial questions, it robs the forum members of an opportunity to demonstrate their analytical skills. If a non-forum member submits an initial post, not a response, in the incorrect forum, it will be treated as a response for purposes of grading and given no more than 2 points. All discussions will be posted in the Discussions section. That is also where the Scenarios will be found. Each student’s analysis/discussion must also be posted in the Discussions. When you respond to another’s post, please indicate the student(s) to whom you are responding. It can be difficult to follow your response if we don’t know the basis for that response. And please, remember to introduce yourself as a visitor to that forum as a matter of courtesy. This is important – you must create a new thread to introduce yourself before you can read the other students’ posts. You don’t need to do this in your own forum. In fact, do not do it. Creating a new thread in a forum to which you weren’t assigned and answering the scenario questions as though the answers are a response, won’t count as a 5 point response. That will result in a maximum of 2 points towards the 5 points for a response. DO NOT prepare your answers as an attachment. I won’t open it to grade it and I don’t expect another student to open an attachment from someone they don’t know. Spelling and grammar are a part of the grading and deductions will be taken if there are errors in these areas. There are 15 points possible for the answers and analysis to the scenario questions and 5 points possible for the response. You are required to create a thread and post something before being able to view the other students’ posts. I have observed that some students attempt to “scam” the forum by posting a sentence in their assigned forum as their initial answers. That enables them to view the other posts. Then they will be able to continue their answers with another post having the benefit of seeing what others have written.
THE CASE OF THE DISHONORED CHECK
Kenneth, as an individual, had an option to purchase a valuable piece of land for $500,000, provided he exercised the option by a certain date by mailing a deposit check for $50,000. This land was appraised at $600,000 and he intended to build housing for his family and his elderly mother on it. He drew a check for $50,000 on his personal checking account he had at Third American Bank and mailed it to the landowner. Kenneth had this checking account for 10 years. At the time he drew the check, he verified electronically that he had $60,000 in his account. However, he owed the bank $30,000 for a collateralized loan that was 60 days overdue. That loan was secured with collateral from Kenneth’s limited liability company, Kenneth’s LLC, and had been taken out two years ago. The bank refused to honor the $50,000 check and spent $750.00 handling the resulting paperwork. As a result of the dishonorment, Kenneth’s option became void, and the landowner sold the land to someone else for $550,000, resulting in a severe loss to Kenneth. He sued the bank for damages.
At trial, Kenneth’s attorneys proved the value of the land, his losses, and the fact that he had always paid the bank on time, except for the most recent payment that was overdue. The bank’s attorneys proved that Kenneth was over sixty days late on his last loan payment and that it was their practice not to notify customers that there might be insufficient funds in their accounts to cover all checks written, as doing so would place an undue burden on the banking system.
The Arguments at Trial
Kenneth’s attorneys argued that a bank has no right to dishonor a check except for the normal reasons permitted by law, such as a suspected forgery, an improper endorsement, and so forth. They further argued that the bank, based on its relationship with Kenneth, should have contacted him before dishonoring the check so that he could have taken other action to prevent his loss of the land and that he did not have an automatic deduction from his personal account for the business loan. The bank’s attorneys argued that Kenneth’s being overdue on his last loan payment indicated he was in financial trouble, that they had a right to seize Kenneth’s account to cover the overdue payment, and that instead they simply refused to honor checks on his account until the overdue loan was paid. They further argued that based on banking industry customs, it is the responsibility of the customer and not the bank to make sure there are sufficient funds to cover checks written. They were losing money each day that the loan was unpaid.
Questions to Discuss
Whom do you think the jury will favor, Kenneth or the bank? Why?If you feel Kenneth should win, what will his damages be? If you feel the bank should win, what will their damages be?Under what circumstances, if any, should a bank be able to offset a loan to a customer against any bank account on which the customer’s name appears?
Jury 2 CriteriaRatingsPts
This criterion is linked to a Learning Outcome Answer 12.0 pts
Sound comprehension of subject matter supported by text ref11.0 pts
Needs more discussion10.0 pts
Lacks comprehension or support of text ref9.0 pts
Opinion based2.0 pts
Unassigned Answer0.0 pts
This criterion is linked to a Learning Outcome Response 5.0 pts
Full Marks2.0 pts
Unassigned Response1.0 pts
Insufficient response0.0 pts
This criterion is linked to a Learning Outcome Citation 2.0 pts
Text Ref1.0 pts
Non-text Ref0.0 pts
This criterion is linked to a Learning Outcome Spelling / Grammar 1.0 pts
Full Marks0.0 pts
Total Points: 20.0