Business Finance Homework Help

Need help with my Business Law question – I’m studying for my class.

the reading is in the attached file.

Eugene Ables ran an excavation company. He borrowed $500,000 from the Highland Park State Bank. Ables signed a note promising to repay the money and an agreement giving Highland a security interest in all of his equipment, including after-acquired equipment. Several years later, Ables agreed with Patricia Myers to purchase a Bantam Backhoe from her for $16,000, which he would repay at the rate of $100 per month, while he used the machine. Ables later defaulted on his note to Highland, and the bank attempted to take the backhoe. Myers and Ables contended that the bank had no right to take the backhoe. Was the backhoe covered by Highland’s security interest? Did Ables have sufficient rights in the backhoe for the bank’s security interest to attach?

1. Having heard that it was a profitable new business, Smith decided to breed emus. They are flightless birds that reproduce rapidly and provide high-quality meat. For $4,000, Penbridge Farms sold Smith a “proven breeder pair,” guaranteeing that the lovebirds had already bred together. When the birds failed to mate, Smith discovered that they were both male. Penbridge refused to return Smith’s money. Smith sued, asking the court for direct, as well as incidental and consequential damages. The evidence suggested that Smith stood to make $100,000 from one season’s chicks. To what kind of damages is Smith entitled? Will he recover lost profits?