New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

CSR 342 Lecture 3

by: Shayna Davis

CSR 342 Lecture 3 CSR 342

Marketplace > Purdue University > Finance > CSR 342 > CSR 342 Lecture 3
Shayna Davis
GPA 3.4
Personal Finance

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Personal Finance
Class Notes
25 ?




Popular in Personal Finance

Popular in Finance

This 14 page Class Notes was uploaded by Shayna Davis on Sunday January 25, 2015. The Class Notes belongs to CSR 342 at Purdue University taught by Plouviez in Fall. Since its upload, it has received 231 views. For similar materials see Personal Finance in Finance at Purdue University.


Reviews for CSR 342 Lecture 3


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/25/15
Chapter 19 Discharge of Contracts 49 how to get out ofcancel a contract Ex Insurance a Precedent an event or state of affairs that must happen before any contractual duties exist b Subsequent a happening which terminates the duty of a party to perform their part c Concurrent the timing requirement de ned by the terms of a contract that requires two events to occur simultaneously Breach by the Other Party EmployerEmployee if the employer violates the agreement the agreement is void A suit for contribution a Chapter 7 debts get absolved and don t have to pay creditors Unabe and unwilling b Chapter 11 corporate reorganization c Chapter 13 get behind payments and make a deal to pay everyone Wage earners ol Chapter 9 municipality Ex Detroit 0 Must be eligible to le for bankruptcy Chapter 7 Means Test court will measure your ability to pay debts by computing disposable income Chapter 13 you have to have a certain amount of secured and unsecured debts Chapter 20 Breach of Contracts and Remedies 414 a Liquidated Damages you agree prior in the contract what you will receive if the contract is breached Ex Able alarm lease takes money out of your security deposit b Compensatory Damages Out of pocket expenses What you lost due to the breached contract c Punitive Damages to make a statement Cap can t recover greater than 3x the amount of compensatory damages OR 50000 75 of the goes to the violent crime fund you keep 25 a Speci c Performance ask the other party to complete the contract b Injunction can be positive or negative request to the court to have someone stop doing something c Restitution restore to prior condition of before the contract d Reformation rewrite the contract redoreshape the contract to actually re ect the intent of the parties Statute of Limitations May prohibitprevent you from winning a lawsuit if it has been over a certain time frame Fraud limitation is 6 years Attorney Fees Contract or Statute says you can add attorney fees to the judgment Chapter 51 Leases 416 When you sign a lease you and other tenants are jointly and severally liable Can sue other tenants for quotcontributequot if you are paying their half of the lease if they leave prior to contract completion Vignettes 1 Eviction If tenant wants you to evict they must go to the court to le a complaint Must have hearing Eviction charges sheet states eviction 7 days after court date and there can only be a 150 late fee max Af davit for writ of execution landlord has to go back to court to le will say you have to evict in 72 hours 2 Access Landlord can t legally change your locks denies you access 3 Conversion Landlord wants to take your TV because you owe rent Sue him for conversion for 3x the value of the TV and attorney fees 0 lnnkeeper s Lien Law Only applies to transient people not tenants with a contract 4 Mitigation Landlord must mitigate the loss of rent You are obligated to pay the rent 5 Inspections Landlord is allowed to have keys to unit to make inspections and repairs 0 You can negotiate when heshe comes Shouldn t be allowed to come at unreasonable times 6 Repairs 0 quotNo Brainerquot repairs ones you d like to see happen 0 Can t live in the place and leave because of no heat or electricity Defense Constructive eviction the place is unlivable and the landlord won t x it 7 Security Deposit o Applies to private renters not university housing 0 Actual damages not caused by wear and tear Can only be used for unpaid utility and sewage charges and actual damages 0 Actual Damages Liquidated damages you agreed in your lease you will pay Ex 5 for every light bulb that doesn t work Landlord is obligated to send you an acknowledgment to tell you how they used the security deposit and if you will get any money back within 45 days If landlord fails law presumes that there are no actual damages BUT doesn t count for rent contractual damages 0 When you move out you must give the landlord the keys and a forwarding mailing address Chapter 37 Agency 421 In IN if you aren t paid your wages when they are due you can send your employer a notice they must pay you within X days if not you are entitled to sue for double the wages plus attorney fees If you are an employee working more than 40 hours a week you are entitled to over time Entitled to 15 x hourly wage over 40 hours If not paid this you can sue for double the wages plus attorney fees 0 Doesn t count for independent contractors Statute of limitations to recover is 3 years Principal not liable for independent contractor s contracts and torts Except A material supplier Within 30 days of delivery of supplies material supplier must notify that the supplies were provided to the IC on credit and if they aren t paid they will put a lien on the house and foreclose Homeowner can request a clause with contractor that relinquishes their right to le a lien including the material lien Chapter 35 Bankruptcy 423 0 Chapter 7 if you make too much money you don t qualify means test 0 Chapter 13 If you have too much secured or unsecured debt Must have enough disposable income to pay for a plan 0 Chapter 9 Municipality Authorized by the state Has to negotiate in good faith with creditors Has to be insolvent In chapter 7 all debts secured and unsecured get discharged The lien of a secured creditor does not get discharged 0 Trustee becomes the ownersuccessor in interest for the debtors property in excess of the exemptions Trustee gathers assets and sells them The money goes to the unsecured creditors who have led a claim Debtor must list all debts and propertassets Preferences and transfers within 90 days or 1 year are subject to be take back by trustee 90 days for noninsiders 1 year for insiders 0 Property trustee Bankruptcy Exemptions Tangible Personal Property 9350 Intangible Personal Property 350 0 Property real estate 17600 0 Retirement Account unlimited Property in excess of exemptions go to the trustee Reaf rm Debt agree to pay debt Redeem Property you have to pay for it upfront to get it back Debts Not Discharged Taxes Except old income taxes 3 years or older have to have led a tax return and then not pay owed taxes Child support DUI claims Malicious injury to property Property settlement agreements Fraud Court nes Student loans Have to prove an undo hardship to prove that it should be discharges quotcertainty of hopelessnessquot Chapters 4244 Partnerships Cooperation Formation 428 Bankruptcy claims get thrown out if Entire bankruptcy denied Concealed assets within 1 year of ling Have led within 8 years Chapter 13 Bankruptcy Keep it all Pay something to some EX Home FVM 100000 MORT 75000 AREARS 8000 behind in monthly mortgage payments in a chapter 7 trustee would sell the home E 1991 Plymouth FMV 5000 OWE 8000 in a chapter 7 trustee wouldn t sell the car 3660 months Net disposable Income gross income taxes living expenses Must have enough to fund the plan Required to pay the 8000 owed in equal monthly installments over 60 months for house Have to pay 5000 not 8000 because they would only get 5000 if they sold it in equal monthly installments over 60 months to keep the car Pus trustee commission At the end of the 60 months you keep both and don t owe anything left over that didn t get covered in the plan An association of 2 or more persons to carry on as coowners a business for pro t Must le a business name certi cateaf davit Death If one partner dies their estate gets money Disability must agree upon how long does the disability payment go for Disagreement how to solve issues If the business goes under they are jointly and severally liable for the debts Assets get sold They should be incorporated le papers with the secretary of state To be incorporated company if free from individual liability Sign everything in corporate capacity Report to secretary of state every 2 yea rs Hold shareholders and board members meeting with recorded minutes To qualify for sub chapter S election Elected Small business corporation Organized under the laws of the US Can t have more than 100 shareholders Have 1 class of shares of stock Chapter 2 The Court System and Dispute Resolution Need to know Summons A notice to appear in court Subpoena Must report to the court 0 You don t need a lawyer in small claims court Sheriff s role to collect tries to nd property assets that can be converted to cash and then gets the cash to you o If a person hasn t paid a judgment but has a car money in the bank stocks cash retirement account and family residence Exemptions Tangible personal property 9350 Intangible personal property 350 0 Retirement account unlimited Family Residence 17600 only counts for primary residence The LESSER of a 25 of disposable earnings OR b Amount by which disposable income exceeds 30 times the federal minimum hourly wage currently 21750 Disposable Earnings gross wages taxes o If the person in option a amount to less that 21750 you collect 0 from them 0 Weekly calculation 0 You can only have 1 garnishment of wages at a time If you are the second claim you must wait for the rst to be paid off Child support takes precedence o If the person moves states can t enforce the garnishment of an IN suit outside of IN suit on a foreign judgment must le a new prosup in that state FL AZ TX doesn t allow garnishment of wages Chapter 4 The Constitution Need to know 0 Miranda Rule Situations where it does or doesn t apply Your right is the 5th Amendment not the Miranda freedom from self incrimination Excusionary evidentiary rule of law You are in custody movement is restricted police don t have to say quotyou are under arrestquot and you are in interrogation police are asking you incriminating questions Freedom from self incrimination Basis of Miranda Rights You don t have the right to have the Miranda rights read to you If you are in custody and police interrogation Miranda must be read An exclusionary evidentiary rule of law If it is not read evidence is not amicable in court They don t always have to read only if they want to talk to you If you are in jail talking to a cell mate info is amicable Police asking you your basic info name age address is not incriminating Chapter 5 Government Regulation of Competition and Prices Need to know Affordable Care Act ntended for everyone to have insurance You have it either from parents Medicare government or ACA Empoyers with more than 50 employees are required quotunder certain rulesquot to provide healthcare If you don t have health care you must pay a tax nsurance can t deny you based on preexisting conditions There are no caps Affordable Healthcare Act Everyone must be covered by health insurance either by your job private or government If you are not covered and are on government ACA you pay tax Employer must supply healthcare if they have 50 full time employees 30 hoursweek Chapter 9 Torts Need to know Elements of a tort 0 You can represent yourself in small claims court 0 Kinds of torts Exam doesn t ask about defenses to product liability battery or conversion Damage component of negligence Proximate cause and foreseeability Tort Claims Act nvolving a government entity tort you must le a written notice within 180 days Assumption of fault Comparative cause you and l are in a car accident can still recover but has to be less than 50 at fault and then judgment is reduced by at fault Contributory Negligence gov t entity can claim as a defense if you are at any of fault you receive nothing Violation not a breach of contract brought in court person vs person remedy is money have to prove burden not looking to punish looking to cover damages 0 The same law suit can be a crime and a tort 2 years statute of limitation on tort cases after this time you loose that chance to bring on a law suit Applies to state and government agencies 0 You only have 180 days if you re suing a governmental entity you just have to notify that you are thinking of it you don t actually have to do it yet 0 The state has 90 days to investigatesettle with you after you may sue o Intentional false imprisonment intentional in iction of emotional distress defamation Strict Liability Product Liability Animals Negligence breach of a duty you owe to a member of society duty breach causation damage lnjury must be proximately caused by the defendant AND the injury must be foreseeable No duty owed no tort 0 Act of God Comparative Fault if plaintiff is 50 or more at fault plaintiff doesn t collect any money or if less than 50 recovery is reduced by the at fault Contributory Negligence only applies to the state state can sue Assumption of risk 0 No duty is owed Compensatory allows you to recover money you came out of your pocket for loss of wages Punitive large amount of money message to the defendant quotdon t you ever do that againquot There is a cap Not more than the GREATER of 3 times the amount of compensatory damages OR 50000 You personally only recover 25 the other 75 goes into the violent crimes fund 0 Nominal only a small amount 1 100 to entitle you to get medical bills paid You can receive both compensatory and punitive Chapter 12 Contracts Need to know total legal obligations which result from the parties agreement Requirements for a valid contract Agreement between parties Agreement supported by consideration Legal capacity of the parties Legal purpose The agreement in proper form 0 Express all terms are set forth no loose ends Doesn t have to be in writing 0 Implied may impose on parties after the fact Quasi prevents unjust enrichment Ex mailing of unordered merchandise constitutes unfair method U39lbUUNH of competition and unfair trade practice Any merchandise mailed to you can be considered a gift Cincinnati Reds 1 Executed one that has been completed Ex A lease for 2013 2 Executory continuing ongoing Ex Lease for 2015 3 Void never existed Ex a drug exchange Valid enforceable contract Voidable when one party in the contract can cancel Ex When a minor turns 18 U39Ilgt The agreement between two parties has to begin with an offer and acceptance 1 Intent to contract 2 Unconscionable clauses 3 Duration of offers reasonable time Liquidated damage clause agreement in advance that if there is a problem our maximum responsibility is In judge said it was unconscionable and denied it OfferAccepted RevocationReceived AcceptanceMailed No questions on exam about the mailbox rule When is an offer effective Acceptance Capacity and Genuine Consent weather or not a minor can enter into a legally binding contract At age less than 18 can cancel a Minors are liable for their own torts b Parents may be liable as well actual damages caused by minor children in intentional torts not liable for negligence Cap is at 5000 Providing the parent has custody of child AND child is living with parent c Liable for contracts of necessity d Other contracts may be rescind upon reaching 18 Voidabe with minor s request If a person is incapacitated can t take care of themselves You can petition to be appointed guardian If the judge decides yes person becomes a quotward of the courtquot and they no longer have the ability to contract 0 If you want to buy a used car what you see is what you get Car example sued seller for breach of contract and fraud a Misrepresentation of material fact b Knowledge of falsity c Intent to deceive d Reasonable reliance by other party e Damages Must prove ALL elements for a fraud case Statutory law covers new cars Covers motor vehicles sold by a buyer in IN operated on public highways registered and licensed in IN and weighs less than 10000 pounds Not Covered conversion vans motor homes farm tractors rigs motor cycleped and snowmobile New car warrantee period term begins on original delivery date to you The EARLIER of 18 months OR 18000 miles Must give dealer a reasonable amount of time to x it 4times OR if the car has been into the shop for a cumulative period of at least 30 business days not Sunday or holiday and they still can t x it Applies to each nonconformity Need to win the case to get attorney fees If they can t x it in a reasonable amount of time you have the right to choose how you are compensated money or a new car If contractor violates home owner can add attorney fees to judgment 0 Agreement oral or written between home improvement contractor and home owner for which contract exceeds 150 Contractor shall provide contract that includes a minimum of certain provisions Cost What work you are going to do Beginningend dates Signatures of both parties How to contact the contractor Contingencies P P FP NE A contractor who enters an unconscionable contract of 4000 or more Unconscionable there is an unreasonable difference between the fair market value of what the client received and the contract price Received 40000 of work and it was contracted for 140000 of work how you get compensated Eement of a contract 0 Best form of consideration Cash 2 d Check 0 A third person may provide 0 Offer of employment no consideration 0 person gives up a legal right Ex a prenup or a property settlement agreement 0 Partial payment must be reasonable in both m how long and m where enforced lf contract is unconscionable judge won t enforce it If employer breached contract it is not enforceable child support is no longer required in IN quotTo contract away a child s right to support must be held void an agreement to contract away a child s right to parenting timemust also be held void as a matter of public policvquot Gets married Joins military Has to be at least 18 not attending a post secondary school and supporting themselves to end child support Statute of Fraud in order for a contract to buy or sell real estate there must be a written document Ex Voodoo estate Sale of personal property must have a written document if over 500 Must have a written document to pay another s bills 0 Certain contracts in order to be enforceable must be in writing Bc it is more difficult to lie You can have an oral contract for more than 500 it s not illegal but not enforceable Conversations leading up to the written contract is void Prevents one party from changing the terms of a complete contract Exceonns 1 Contract is ambiguous 2 Contract was secured by fraud 3 Words with particular meaning 4 Contract is unconscionable Burden is on the party who wrote the contract There must be legal purpose for a contract


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.