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Subject Topic: 2 difference b/w Becker and Gleim (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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kanba
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Posted: 03 Jan 2012 at 21:03 | IP Logged  

I found 2 difference b/w Becker and Gleim. Could anyone help to figure out?

First, there is an answer of Gleim stated that "Accommodation parties and agents signing a negotiable instrument on behalf of a principal have either contract or warranty liability." However, Becker's textbook represented that "Accommodation party is liable in capacity in which signed." and followed an example " Alex wants to buy a car from Becky and wants to pay with a promissory note. Becky agrees to take a note only if Alex can get Cindy to sign the note as co-maker. If Alex gets Cindy to sign, Cindy is an accommodation pary and Cindy is liable as a maker."

The second is Becker said the Fair Labor Standards Act prohibits employing children under 14 years of age while Gleim stated the number is 16 years. 

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nambivar
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Posted: 03 Jan 2012 at 21:56 | IP Logged  

Here is some info on your second doubt re: FLSA and employment of children. The website is http://www.dol.gov/whd/regs/compliance/whdfs43.htm

"Minimum Age Standards For Employment

The FLSA .... "Children of any age are generally permitted to work for businesses entirely owned by their parents, except those under age 16 may not be employed in mining or manufacturing and no one under 18 may be employed in any occupation the Secretary of Labor has declared to be hazardous." It goes on to say, " Children under 14 years of age may not be employed in non-agricultural occupations covered by the FLSA. Permissible employment for such children is limited to work that is exempt from the FLSA (such as delivering newspapers to the consumer and acting). Children may also perform work not covered by the FLSA such as completing minor chores around private homes or casual baby-sitting."

Hope this helps.
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nambivar
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Posted: 03 Jan 2012 at 22:18 | IP Logged  

Here is some info on the first part of your doubt: Article 3 of the UCC deals with negotiable instruments.I found the info in the website very useful: http://www.law.cornell.edu/ucc/3/article3.htm
In particular, 3-419.  INSTRUMENTS SIGNED FOR ACCOMMODATION. says: ...(b)  An accommodation party may sign the instrument as maker, drawer, acceptor, or indorser and, subject to subsection (d), is obliged to pay the instrument in the capacity in which the accommodation party signs.  The obligation of an accommodation party may be enforced notwithstanding any statute of frauds and whether or not the accommodation party receives consideration for the accommodation.

(c)  A person signing an instrument is presumed to be an accommodation party and there is notice that the instrument is signed for accommodation if the signature is an ..... or is accompanied by words indicating that the signer is acting as surety or guarantor with respect to the obligation of another party to the instrument...

(d)  If the signature of a party to an instrument is accompanied by words indicating unambiguously that the party is guaranteeing collection rather than payment of the obligation of another party to the instrument, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument only if ....(it goes on to describe 4 situations..).

(e) If the signature of a party to an instrument is accompanied by words indicating that the party guarantees payment or the signer signs the instrument as an accommodation party in some other manner that does not unambiguously indicate an intention to guarantee collection rather than payment, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument in the same circumstances as the accommodated party would be obliged, without prior resort to the accommodated party by the person entitled to enforce the instrument.....

Hope this clarifies.

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Passed F,B 4/11, R 8/11, A 11/11

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HopeCPAin2010
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Posted: 04 Jan 2012 at 10:56 | IP Logged  

Isn't Cindy becoming surety as she signs the agreement?  So Cindy is liabile?

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nambivar
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Posted: 04 Jan 2012 at 16:01 | IP Logged  

kanba has quoted Becker's text: If Alex gets Cindy to sign, Cindy is an accommodation party and Cindy is liable as a maker.
Article 3-419 (b) also mentions the same.
Yes, Cindy is signing as co-maker and is liable.
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