Kathy Has Decided to Spend Some Money on Herself and Goes

question 90

Essay

Kathy has decided to spend some money on herself and goes out to purchase a big screen television and a home theater system.She goes to Best Circuit,a national chain and sees the exact television she wants and it's on sale.She purchases the television for cash and then looks at the home theater systems.She sees a few that she likes and one that she loves.Unfortunately the one she loves is more than her budget allows so she decides to wait until it goes on sale.The next day she's mentions home theatre system to a coworker who tells her that she knows someone that sells home theater systems very inexpensively.She calls this "friend" who meets her at lunch time and has the theater system she wants in the trunk of his car.It's in a sealed box and the price is 25% off what Best Circuit sells it for.Kathy purchases the system for cash and takes it home.A week later,the police show up at her door.It seems that Best Circuit paid the manufacturer with a bounced check when obtaining the television.The "friend" turned out to be a thief that sold her a stolen theater system.Does Jan get to keep the television and home theater system or must she relinquish them?

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Definitions:

Largest United States Bank

Refers to the biggest bank in the United States by assets or market capitalization, often a title held by major institutions like JPMorgan Chase or Bank of America.

Factor of Production

Resources used to create goods and services, typically classified into land, labor, capital, and entrepreneurship.

Currency Component

The part of the money supply consisting solely of currency in circulation - notes and coins.

Federal Reserve Notes

Paper currency issued by the Federal Reserve, the central bank of the United States, used as legal tender.