Chapter 1, Problem 14DQ

DeWayne has two credit cards, which he uses to pay for everything. DeWayne does not check his credit card statements regularly, so sometimes, such as when a machine at a store malfunctions, he is charged twice for the same purchase. DeWayne makes sure that he pays the minimum payment on each credit card, but most of the time he does not have enough money to pay more than the minimum payment. Recently, something has happened so that DeWayne cannot even pay the minimum payments on his credit cards. DeWayne has stopped making payments for his mortgage (a loan used to buy a house) because he does not have enough money. He is worried because he doesn't have any investments or large savings accounts. On a rainy Wednesday, DeWayne receives a phone call from the bank. He is in debt. Use the list "How to get out of debt" to make five different suggestions to help DeWayne deal with his debt.

Jake’s grandmother paid for their lunch with a credit card. The waitperson brought him back the card, and he signed the receipt. Several charges appeared on his grandmother’s credit card bill that he had not made a month later. Identify the victim and the violator. What term describes what the waitperson did? What should Jake advise his grandmother? Please answer with more than 200 words

Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip’s parents. This violates   a.  the Fair Debt Collection Practices Act.     b.  the Fair and Accurate Credit Transactions Act.     c.  the Truth-in-Lending Act.     d.  no federal law

Suppose that someone stole your ATM card and withdrew $1,000 from your checking account.  How much money could you lose (according to federal legislation) if you reported the stolen card to the bank:

Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid the 1,255 bill. Your client is on the accrual basis of accounting. He does not want the refrigeration repair expense on the books as of the end of the month because he wants his profits to look good for the bank. Is your client behaving ethically by suggesting that the refrigeration repair expense not be booked until the 1,255 is paid? Are you behaving ethically if you agree to the clients request? What principle is involved here?

Betty writes a check for $500 payable to Luanne and drawn on Union Planters Bank. Luanne indorses the check on the back and gives the check to Randolph in payment for a couch that Luanne buys from Randolph. Randolph indorses the check on the back, under Luanne's signature, and takes the check to Union Planters Bank to cash. Union Planters Bank dishonors the check, even though there are sufficient funds in Betty's account. Primary liability for honoring the check that Randolph presented to Union Planters Bank lies with: Union Planters Bank and Betty. Betty only, because she is the drawer. Union Planters Bank only. Randolph's only recourse is to sue Union Planters Bank. Luanne only, because Luanne is the party from whom Randolph received the check.

Able, a salesman, “borrowed” a stack of blank receipts from a friend who was a waiter at a local restaurant.Able filled in the blank receipts to make it appear that he had been entertaining clients at business lunches. Hesubmitted the receipts to his manager and was reimbursed for the total amount. This scheme can bestbe characterized as: A. A fictitious expense schemeB. A kickback schemeC. A false billing schemeD. A mischaracterized expense scheme

Hanna works as a teller a bank. One of Hanna's clients, an out of province student, started to consistently deposit large amounts of cash in the form of $5, $10, and $20 Bills. Hanna asked her client the source of these funds. The client said, it is from her parents. Should Hanna report this transaction? If you select A, What are the penalties for not reporting this transaction?

Bob owns a boat supply store in Grosse Point. In March Bob borrows $1million from Mafia Bank to purchase Governor Snyder’s yacht. Mafia Bank takes a Security Interest in the yacht but does not perfect. In May, Bob borrows money from Premier Bank to purchase inventory. Premier takes a security interest in all inventory and files a financing statement. In June, Mafia Bank files a financing statement. If Bob defaults on all his loans, who wins?