Indicate on the Blanks Below the Letter of the Type

question 42

Essay

Indicate on the blanks below the letter of the type of activity (O = operating activity,F = financing activity,I = investing activity,N = noncash transaction)each of the following transactions represents.
_____ 1.Firm sold 8,000 shares of its own common stock for cash.
_____ 2.Sold $200,000 worth of products for cash.
_____ 3.Paid $120,000 dividend.
_____ 4.Received $1,500 in interest income.
_____ 5.Exchanged 6,000 shares of stock for 15-year bonds.
_____ 6.Paid $121,000 to the U.S.Treasury for income taxes.

Analyze and apply the criteria for determining the enforceability of liquidated damages provisions.

Examine the enforcement of contract provisions limiting consequential damages, with a focus on consumer goods.

Identify the remedies available to sellers and buyers under the Uniform Commercial Code (UCC) when a contract breach occurs.

Understand the statutes of limitation for contracts for the sale of goods under the UCC.

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Definitions:

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.

Note

A promise by the maker of the note to pay the payee of the note.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Negotiable Instruments

Financial documents that guarantee the payment of a specified sum of money, either on-demand or at a set time.