Read the following scenario and answer the question in 510 sentences
1. Steve issues a 30-day negotiable promissory note, payable to the order of Henry, to cover the cost of Henry buying a car for Steves racing operation. Steve signed the note, but the amount on the note is left blank. Henry has clear instructions that he is not to spend over $5,000 on the car. Tired of being Steves lackey, Henry fills out the note for $10,000 and sells it to First Auto Bank for $9,500. The bank has no knowledge that the amount on the note was originally left blank or that the amount of the note was to be capped at $5,000. Thirty days later, the bank comes to Steve wanting $10,000. As the bank manager, what is your argument to Steve to collect on the note.
2. On April 4, 2014, a press operating company sent a fax including the following information to a metal plate manufacturer:
Size TU. Quantity 25. $45 each. $1,125 total. Ship to our warehouse in LaGrange, KY by May 1, 2014 Payment 10 days from delivery.
The manufacturer immediately sent the following fax in return: Order is accepted. Ship by May 1, 2014 Interest on balance over 30 days at 2% per month.
No other communications took place. On May 6, 2014, 20 metal plates meeting the specifications were delivered, along with a note stating that, due to manufacturing difficulties, no other plates of that specification could be delivered. As the press operator, how would you respond?
3. Shovel Supply Wholesale purchases 1,000 shovels from a manufacturer under a financing agreement, which has been properly recorded under the UCC in the businesss home state in the amount of $50,000. Petes Depot, a regular customer of Shovel Supply, pays cash for 75 shovels to Shovel Supply, and the shovels are delivered to his business. Two weeks later, a representative of the manufacturer shows up at Petes demanding the 75 shovels because Shovel Supply has defaulted on its loan. How do you respond if you are the owner of Petes?