SOLVED

56) When an accord and satisfaction is at issue, what is the debtor’s payment of the reduced amount called? A) Satisfaction B) Accord C) Seal D) Written acknowledgement E) Written compromise 57) Which of the following is true regarding an accord and satisfaction? A) When amounts agreed upon are paid, the debt is fully discharged. B) When amounts agreed upon are paid, the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness. C) When amounts agreed upon are paid, the debt is fully discharged except for any interest due on the initial indebtedness. D) When amounts agreed upon are paid, the debt is fully discharged except for any late charges or interest due on the initial indebtedness, or attorney fees of the creditor that are due. E) When amounts agreed upon are paid, the debt is fully discharged except for any late charges due on the initial indebtedness. 58) If a check is marked “paid in full,” which of the following is true under the UCC? A) If a business inadvertently cashes such a check, the business has 90 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. B) If a business inadvertently cashes such a check, the business has 120 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. C) The business has no recourse, and the debt is deemed discharged and satisfied. D) If a business inadvertently cashes such a check, the business has 30 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. E) If a business inadvertently cashes such a check, the business has 60 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. 59) What can a business do to protect itself from a debtor’s attempt to create an accord and satisfaction by sending the creditor a check with “paid in full” written on it? A) Rely on the doctrine of promissory estoppel to ensure such checks are not valid. B) Issue only liquidated debts to debtors and include provisions in credit card statements prohibiting the issuance of unliquidated debt. C) Sue the debtor for the remaining balance and argue there was insufficient consideration because there was no bargained for exchange when the check was sent “Paid in Full.” D) Nothing. Businesses must carefully review every check to avoid inadvertently creating an accord and satisfaction. E) Notify debtors that any attempt to settle a claim for less than the amount owed must be sent to a particular address and/or a particular person. 60) Raphael, who owes $10,000 to his credit card company, sends a check to his credit card company for $50 and marks the check “paid in full.” The credit card company inadvertently cashes the check, but the mistake is caught two weeks later and they offer to repay Raphael his $50. Raphael does not respond. Does accord and satisfaction exist? A) No, because the $50 payment accounted for less than 10 percent of the balance due. B) No, because the bank offered to repay the money in a timely manner. C) Yes, because Raphael did not accept the bank’s offer for repayment. D) Yes, because the bank cashed the check and this is sufficient for accord and satisfaction. E) Yes, because the bank has to offer a refund to Raphael within one week to avoid accord and satisfaction. Â Â