Legal Defense and Bankruptcy Options

The assignment involves a case where Fred and Sally, the owners of an organization, are seeking legal assistance against Don Check Cashing, Jane, the church, and Bob. The main issues include forged checks, breach of fiduciary duties, and infringement of patent rights. The attorney provides a summary of the legal actions that can be taken, including bankruptcy options under Chapter 7 or 11, and implications on business and personal assets. Additionally, the attorney discusses the possibility of suing Jane for forgery and Bob for patent infringement.

CASE-2

Dear Fred and Sally,
Thank you for appointing me as an attorney to assist you in legal actions that can be taken
against Don Check Cashing, the church, Jane and what will be needed to proceed with the
bankruptcy
As against Don
Our legal defence will demonstrate that Don Check Cashing, neglected to act in a business
sensible standard. In spite of the fact that the checks were composed to him, the signatories on
the check were not the names recorded and it was also not your signature, is not genuine or
forgery under section 1-201 under the Uniform Commercial Code (US Government). Jane was
bookkeeper for the organization. Both you and Sally were the approved signatories for the
organization. Jane produced a few checks payable to Don, to reimburse her betting obligation. A
party's entitlement to uphold a negotiable instrument is defended by extortion in the factum,
imitation, material change. In the event that Jane was not approved to sign on behalf of Fred and
Sally, you won't be at risk for the check. Bank, will have explanations that the client doesn't
advise the bank within specified time, so, bank cannot be obligated for the fabrication.
Church
As of Church it will be difficult to prove Church’ malafide intent. Again, the Church was the
holder in due course and had no knowledge as to the forgery of check. But, under section 3-
103(7), of Uniform Commercial Code, you and Sally could also prove that you were in
maintenance of the business and took due care which an ordinary man is supposed to and this

will help you, since, bank will initiate the refund for the loss in lieu of holding the depository
bank being made liable for the failure to verify the check validity.
Civil Claims
Several checks were forged by Jane and written to Don. Jane has also violated fiduciary duties to
business, by embezzlements of funds and also fabricating statements, so she can be sued for the
breach of fiduciary duty in the Court of Law and claim of damages is a plausible option.
Bankruptcy
The available forms of bankruptcy are outlined here, where in Liquidation, individuals give up
non-exempt assets and in reorganization under Chapter 11 (US Government) , businesses are
nothing but the restructured debt where debts are repaid with retention of assets and some
creditors gets paid in full with interest. But, if filed under Chapter 7 (US Government) then there
will be no discharge on debts, it is due to the fact that the business ceases to exist in this case.
Implication of bankruptcy on business asset
If you choose to file a Chapter 7 bankruptcy then the whole of the business asset gets liquidates
but, if Chapter 11 is chosen then renegotiating debt repayment subsides with a change on the
entire corporate structure of the business.
Implications of bankruptcy on personal assets
Personal assets will be at stake if you claim a Chapter 7 bankruptcy, so you will be facing issues
relating to forced sale, liens, or forfeiture, but if a Chapter 11 bankruptcy is claimed then there

will be an option available to re- negotiate with the creditors for the re- construction of the
business.
Infringement of Patent
The action of Bob clearly depicts the infringement of your intellectual property rights with
regards to patent. But in order to file an infringement against Bob, you need to prove that you
have the exclusive right on the product i.e. the cough syrup and have registered it as a patent (US
Government).
.
Thanking You
Yours Sincerely,
Attorney

References
US Government. (n.d.). 11 U.S. Code Chapter 11 - REORGANIZATION. Retrieved from
https://www.law.cornell.edu/uscode/text/11/chapter-11
US Government. (n.d.). 11 U.S. Code Chapter 7 - LIQUIDATION. Retrieved from
https://www.law.cornell.edu/uscode/text/11/chapter-7
US Government. (n.d.). 35 U.S. Code § 271 - Infringement of patent. Retrieved from
https://www.law.cornell.edu/uscode/text/35/271
US Government. (n.d.). Uniform Commercial Code › U.C.C. - ARTICLE 1 - GENERAL PROVISIONS (2001) ›
PART 2. GENERAL DEFINITIONS AND PRINCIPLES OF INTERPRETATION › § 1-201. General
Definitions.- (19) "Genuine". Retrieved from https://www.law.cornell.edu/ucc/1/1-201