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Solution for Business Law 3rd Edition Chapter 13, Problem 1

by Nickolas James
128 Solutions 13 Chapters 13481 Studied ISBN: 9780730305743 Business Law 5 (1)

Chapter 13, Problem 1 : 1.Johnny has ordered some office furniture from Monkey...

1.Johnny has ordered some office furniture from Monkey Pty Ltd. When the furniture is delivered, the delivery truck causes substantial damage when it backs into the door above the delivery dock at the back of the Organicola factory. The quote for repair to the door is for $5000. Monkey Pty Ltd agrees to reimburse Johnny for the cost, but fails to send Johnny the money as promised. Advise Johnny about how he can recover the debt from Monkey Pty Ltd.

 

Step-By-Step Solution

See Business Lawpp656-660.

The major steps in the process of recovering an outstanding debt are:

  1.                 Draft and deliver a letter of demand
  2.                 Consider ADR
  3.                 Draft and serve statement of claim
  4.                 Debtor’s response
  5.                 Court hearing

Methods for enforcing the court judgment include:

  •                  Examination summons
  •                  Writ of execution
  •                  Seizing of security
  •                  Garnishee order
  •                  Bankruptcy or liquidation proceedings

 

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