What Can a Business Do to Protect Itself from a Debtor's

question 68

Multiple Choice

What can a business do to protect itself from a debtor's attempt to create an accord and satisfaction by sending the creditor a check with "paid in full" written on it?

• A) Nothing. Businesses must carefully review every check to avoid inadvertently creating an accord and satisfaction.
• B) Issue only liquidated debts to debtors and include provisions in credit card statements prohibiting the issuance of unliquidated debt.
• C) Rely on the doctrine of promissory estoppel to ensure such checks are not valid.
• D) Notify debtors that any attempt to settle a claim for less than the amount owed must be sent to a particular address and/or a particular person.
• E) Sue the debtor for the remaining balance and argue there was insufficient consideration because there was no bargained-for exchange when the check was sent "Paid in Full."

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Definitions:

Generalized Anxiety Disorder

A chronic psychological disorder characterized by excessive worry and anxiety about a variety of events or activities.

Amygdala

A region of the brain involved in experiencing emotions, particularly fear and pleasure.

Affect

In psychology, a term indicating “emotion” or “mood.”

Emotion

The “feeling” aspect of consciousness, characterized by a certain physical arousal, a certain behavior that reveals the emotion to the outside world, and an inner awareness of feelings.