Project CASE: As of January 1st, Landon Company owes First Bank $400,000 which is due on December
Question:
Project CASE:
As of January 1st, Landon Company owes First Bank $400,000 which is due on December 31st. Since
Landon Company seems unable to repay the note, the bank agreed that Landon can settle this balance
by agreeing to make four annual installments on each of the next four years, provided that it adds a
"due on demand" clause to the note. Specifically, the lender will "do its best" not to call the note,
provided that no adverse significant shift occurs in business operations. However, First Bank has the
sole discretion to ascertain if adverse conditions arose, and then to call the note due immediately. How
should Landon Company account for this situation?
Guidelines
The Research Memorandum must be at least three to five pages in length, NOT including references. Spend no more than one page describing the situation. The paper and presentation must cite authoritative bodies.
Requirements:
I. In a minimum of seven sentences each:
1. describe your initial thoughts regarding the case and the challenges that you feel that you will face with regards to the depth and complexity of the issues that will be addressed.
2. summarize the background of your case and indicate any assumptions that you are making regarding the case. Define your problem statement and research question(s).
3. identify the key terms in your case and state why you believe that each one is relevant to your case.
II. Gather data from multiple sources and present that data in one to two pages (12-point, 2x spaced). Be sure to document your sources.
III. Organize and interpret the findings of your research in one to two pages (12-point, 2x spaced).
IV. Develop your recommendations and conclusions, and state them and their rationale in one to two pages (12-point, 2x spaced).
V. Using the guidelines above, have a comprehensive research memorandum on the case study above.
Business Law Principles for Today's Commercial Environment
ISBN: 978-1305575158
5th edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene