Agents' Signatures. Robert Helmer and Percy Helmer, Jr., were authorized signatories on the corporate checking account of Event Marketing, Inc. The Helmers signed a check drawn on Event Marketing's account and issued to Rummel Technologies, Inc. (RTI), in the amount of $\$ 84,965$. The check was signed on July $13, 2022$, but dated August $14$ . When RTI presented the check for payment, it was dishonored due to insufficient funds. RTI filed a suit in a Georgia state court against the Helmers to collect the amount of the check. (See Signature Liability.)

(a) The first group will determine whether an authorized signatory on a corporate account can be held personally liable for corporate checks returned for insufficient funds.

(b) The second group will decide if the Helmers were personally liable on Event Marketing's check in this situation.

Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp to issue checks to the nursing home's employees for up to $\$ 500$ as advances on their pay. The checks were drawn on Golden Years' account at First National Bank. Over a seven-year period, Mahar wrote a number of checks to employees exclusively for the purpose of embezzling funds for herself. She forged the employees' indorsements on the checks, signed her name as a second indorser, and deposited the checks in her personal account at Star Bank. The employees whose names were on the checks never actually requested them. When the scheme was uncovered, Golden Years filed a suit against Mahar, Star Bank, and others to recover the funds. Using the information presented in the chapter, answer the following questions.

Based on these facts, describe any transfer or presentment warranties that Mahar may have violated.

Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp to issue checks to the nursing home's employees for up to $\$ 500$ as advances on their pay. The checks were drawn on Golden Years' account at First National Bank. Over a seven-year period, Mahar wrote a number of checks to employees exclusively for the purpose of embezzling funds for herself. She forged the employees' indorsements on the checks, signed her name as a second indorser, and deposited the checks in her personal account at Star Bank. The employees whose names were on the checks never actually requested them. When the scheme was uncovered, Golden Years filed a suit against Mahar, Star Bank, and others to recover the funds. Using the information presented in the chapter, answer the following questions.

Under the UCC, which party, Golden Years or Star Bank, must bear the loss in this situation? Why?

Defenses. Niles sold Kennedy a small motorboat for $\$ 1,500$, telling Kennedy that the boat was in excellent condition. Kennedy gave Niles a check for $\$ 1,500$, which Niles indorsed and gave to Frazier for value. When Kennedy took the boat for a trial run, she discovered that the boat leaked, needed to be painted, and required a new motor. Kennedy stopped payment on her check, which had not yet been cashed. Niles had disappeared. Can Frazier recover from Kennedy as a holder in due course? Discuss. (See Defenses and Limitations.)

Suppose that the name Red Rhino Market Group, LLC, had not been included on the note. Would Evans have been personally liable for its payment? Discuss.

How did the rules of contract construction apply in this case?

Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp to issue checks to the nursing home's employees for up to $\$ 500$ as advances on their pay. The checks were drawn on Golden Years' account at First National Bank. Over a seven-year period, Mahar wrote a number of checks to employees exclusively for the purpose of embezzling funds for herself. She forged the employees' indorsements on the checks, signed her name as a second indorser, and deposited the checks in her personal account at Star Bank. The employees whose names were on the checks never actually requested them. When the scheme was uncovered, Golden Years filed a suit against Mahar, Star Bank, and others to recover the funds. Using the information presented in the chapter, answer the following questions.

What is the rule set forth by that provision?

Relative to the U.S. distribution network, calculate the cost associated with running the existing system. Assume that 40 percent of the volume arrives in Seattle and 60 percent in Los Angeles and the port processing fee for federal processing at both locations is $$5.00. per CBM. Assume that everything is transferred to the Kansas City distribution center by rail, where it is unloaded and quality-checked. Assume that all volume is then transferred by truck to the nine existing warehouses in the United States

Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U.S. SP currently operates four manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT. The plants have different capacities and production costs, as indicated in the following table.

$$\begin{array}{lcc} \text { Plant } & \begin{array}{c} \text { Maximum Capacity } \\ (\times 100,000 \text { lbs.) } \end{array} & \begin{array}{c} \text { Prod. Costs } \\ \text { (per } 1,000 \mathrm{lbs} .) \end{array} \\ \hline \text { Philadelphia } & 7.5 & \$ 325.00 \\ \text { Atlanta } & 9.0 & \$ 275.00 \\ \text { St. Louis } & 12.0 & \$ 305.00 \\ \text { Salt Lake City } & 10.3 & \$ 250.00 \\ \hline \end{array}$$

SP currently has six contract customers located in New York City; Birmingham, AL; Terre Haute, IN; Dallas, TX; Spokane, WA; and San Diego, CA. Transportation costs between the plants and various customers, as well as contracted demand from each customer, are shown in the following table. (Answers in Appendix D)

$$\begin{aligned} &\text { Transport Costs per } 1,000 \text { lbs. }\\ &\begin{array}{lcccccc} \text { From/To } & \text { NYC } & \text { Birmingham } & \text { Terre Haute } & \text { Dallas } & \text { Spokane } & \text { San Diego } \\ \hline \text { Philadelphia } & \$ 45 & \$ 52 & \$ 56 & \$ 62 & \$ 78 & \$ 85 \\ \text { Atlanta } & \$ 55 & \$ 42 & \$ 58 & \$ 59 & \$ 80 & \$ 82 \\ \text { St. Louis } & \$ 57 & \$ 60 & \$ 50 & \$ 54 & \$ 65 & \$ 70 \\ \text { Salt Lake City } & \$ 72 & \$ 71 & \$ 67 & \$ 57 & \$ 52 & \$ 60 \\ \hline \text { Total Demand } & & & & & & \\ \quad(\times 1,000 \text { lbs.) } & 525 & 415 & 925 & 600 & 325 & 400 \\ \hline \end{array} \end{aligned}$$

a. Create a solver model and find the optimal solution to help SP develop a distribution plan that will minimize costs to supply the customers' demand.

b. Comment briefly on your solution. Beyond the obvious, does your proposed solution have any other implications for SP?

Signature Liability. Waldo makes out a negotiable promissory note payable to the order of Grace. Grace indorses the note by writing on it "Without recourse, Grace" and transfers the note for value to Adam. Adam, in need of cash, negotiates the note to Keith by indorsing it with the words "Pay to Keith, Adam." On the due date, Keith presents the note to Waldo for payment, only to learn that Waldo has filed for bankruptcy and will have all debts (including the note) discharged. Discuss fully whether Keith can hold Waldo, Grace, or Adam liable on the note. (See Signature Liability.)

Material Alteration. Williams purchased a used car from Stein for $\$ 1,000$. Williams paid for the car with a check (written in pencil) payable to Stein for $\$ 1,000$. Stein, through careful erasures and alterations, changed the amount on the check to read $\$ 10,000$ and negotiated the check to Boz. Boz took the check for value, in good faith, and without notice of the alteration. He thus met the Uniform Commercial Code's requirements for the status of a holder in due course. Can Williams successfully raise the universal (real) defense of material alteration to avoid payment on the check? Explain. (See Defenses and Limitations.)

Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp to issue checks to the nursing home's employees for up to $\$ 500$ as advances on their pay. The checks were drawn on Golden Years' account at First National Bank. Over a seven-year period, Mahar wrote a number of checks to employees exclusively for the purpose of embezzling funds for herself. She forged the employees' indorsements on the checks, signed her name as a second indorser, and deposited the checks in her personal account at Star Bank. The employees whose names were on the checks never actually requested them. When the scheme was uncovered, Golden Years filed a suit against Mahar, Star Bank, and others to recover the funds. Using the information presented in the chapter, answer the following questions.

With regard to signature liability, which provision of the Uniform Commercial Code (UCC) discussed in this chapter applies to this scenario?

On Evans's motion for summary judgment, what evidence did the opposing parties emphasize? Based on this evidence, what did the court conclude?

Was Cypress's conduct unethical? Why or why not?