Overview
You are required to answer both questions. Your responses must demonstrate your knowledge and understanding derived from the assigned textbook chapters. To earn full credit, ensure your answers include specific examples to support your explanations and are grammatically correct.
It is imperative that each answer is clearly labeled with the corresponding question number. Failure to do so will result in a deduction of 10 points per answer.
Each answer (each question) must meet a minimum word count of 250 words.
Question#1
State Farm Insurance Co. issued a policy to Tommy Truluck to insure a BMW X5 for collision damage. The policy provided, “No assignment . . . is binding upon us unless approved by us.” When the BMW was involved in an accident, State Farm agreed that the vehicle should be repaired. XYZ Collision, Inc., performed the repairs at a cost of $11,000. State Farm offered to pay $5,000. Truluck assigned to XYZ the right to pursue State Farm for the difference. The assignee filed a suit in a Wyoming state court against State Farm Insurance Co. to recoup this amount. State Farm Insurance Co. responded with a motion to dismiss, arguing that the plaintiff, XYZ, lacked the capacity to sue because the defendant had not consented to the transfer by Truluck. Is the assignment valid? Please explain. [100 points]
Question#2
Miriam’s Glatt Kosher Caterers (MGKC) ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York resort. Ida Goldfarb verbally agreed to pay MGKC $8,000 for the “Passover package” for herself and her family. Goldfarb did not appear at the resort and never paid the money owed. MGKC sued Goldfarb for breach of contract. Goldfarb claimed that the contract was unenforceable because it was not in writing and violated the UCC’s Statute of Frauds. Is the contract valid? Please explain. [100 points]