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Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz
Edition 8ISBN: 978-0324654554Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz
Edition 8ISBN: 978-0324654554 Exercise 4
Java Jive, Inc., is a small chain of coffee shops. Adam is Java live's president.
Ultimately, Java Jive is unable to pay its employees or to repay its creditors. The creditors include First National, whose loan is secured by Java Jive's equipment and fixtures; Eagle, which loaned funds to Java Jive to pay its employees without Adam's promise to repay the loan on Java Jive's default; Ace, which was not repaid for its loan to Java Jive to make physical improvements to its stores; and Jones Construction, the contractor that was not fully paid for its work. Java Jive, which also owes unpaid taxes, files a petition to declare bankruptcy. If the court grants the petition, will the creditors be paid? In what order?
Ultimately, Java Jive is unable to pay its employees or to repay its creditors. The creditors include First National, whose loan is secured by Java Jive's equipment and fixtures; Eagle, which loaned funds to Java Jive to pay its employees without Adam's promise to repay the loan on Java Jive's default; Ace, which was not repaid for its loan to Java Jive to make physical improvements to its stores; and Jones Construction, the contractor that was not fully paid for its work. Java Jive, which also owes unpaid taxes, files a petition to declare bankruptcy. If the court grants the petition, will the creditors be paid? In what order?
Explanation
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Verified
, the creditors will receive partial pa...
Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz
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