Acme Bolt Cutters in Attachment and Bankruptcy Law Case Essay

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Updated: Apr 11th, 2024

Attachment Law

Attachment is a legal practice through which a court of law, followed by the appeal of a creditor, entitles particular property possessed by the debtor to be reassigned to the creditor, or vended for the profit of the creditor. The debtor, in this case, is Mace Hardware Stores and the creditor is Acme Bolt Cutters. An extensive assortment of legal instruments is engaged by debtors to avert the connection of their fixed and liquid assets. For example, an assertion of bankruptcy will rigorously limit the capability of creditors to link the possessions of the debtor. Many prerogatives have a household exemption or other possessions exclusions that limit the capacity of creditors to link the debtor’s main dwelling, automobile, and individual belongings.

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Acme Bolts Cutters had vended a thousand units of their chief and first-class bolt cutting merchandise to Mace Hardware Stores. The price per unit for these merchandise was a hundred dollars. Therefore Acme owed Mace Hardware Stores $100,000. This payment was supposed to be honored 30 days after delivery. The3 units’ were shipped by Acme and delivered to Mace Hardware Stores. However, the 30 day requirement period passed and Acme was not paid. Herman Mace who is the sole owner of Mace Hardware stores and who also owns 100 percent shares of the company had guaranteed Acme that the payment would be made to Acme 30 days after delivery of the shipment.

Therefore he spoke on behalf of his organization. Nevertheless, when Holly Benson who is an employer in Acme working in the finance department of Acme involved in the collection of payments and clearing cheques, called Mace hardware Store, Herman was very rude, and according to his tone, it was clear he was not interested in paying up. In his conversation with Holly, he first critiqued Acme for their unprofessionalism and lack of quality in their work. He also mentioned that the economic and financial market climate was not good and therefore Acme would have to wait until things get better or settle down before Mace Hardware stores could consider paying them up. However, later Herman sent a $ 10,000 cheque to them with his company’s name at the bottom. Therefore this means that Herman Mace was a different entity from his company Mace Hardware Stores which was its own entity. However, Mace Hardware Stores was not a limited company and therefore Mace was liable for all debts that the company owed.

Enforcement of Judgment law

Following the judgment, the court ruled in favor of Acme. However, the court ruled against Mace Hardware Stores and not against Herman Mace. This meant that only Mace Hardware Stores was liable to settle any debt owed to Acme. According to the law, there are limited companies and unlimited companies. Whereby in this case it means that Mace Hardware Stores was a limited company whereby the liability was limited to the assets of the company or entity and hence the personal possessions of the shareholders or owners who in this case is only one person who is Herman Mace were exempted. However, if Mace Hardware Stores was not limited the court would have ruled directly against Herman Mace. This would therefore mean that Acme would be given the mandate to sell the personal possessions of Herman Mace in trying to settle the debt. But for now, they only have the mandate to sell the property of Mace Hardware stores to settle their debt.

Bankruptcy Law

Bankruptcy or insolvency is a legal standing of an individual or an association that is unable to live up to the payment contract assuring paying off of the debts due to creditors. Most of the cases of bankruptcy are instigated by the borrower. In this case, the debtor is Herman who filed for bankruptcy seeing that his wife would go away with all his assets. An unintentional bankruptcy request is impossible to be filed in contradiction of a certain debtor that is not involved in commercial activities. The main emphasis of contemporary bankruptcy lawmaking and commercial debt restructuring activities has ceased to rely on the eradication of bankrupt individuals and organizations but on the restoration of the commercial and administrative structure of insolvents undergoing financial problems for the reason of allowing the reintegration and perpetuation of their commercial activities through their businesses.

For individual families, like that of Herman Mace and his wife it is of the opinion of many renowned lawyers and lawmakers to be inadequate to simply discharge debts following a specific period of time. Therefore, it is vital to evaluate the fundamental complications in order to reduce the hazard of financial problems happen again. Herman Mace, who owned a ranch and sold it to his brother Steven, was already experiencing financial upheavals and hence was trying to salvage the situation by selling the ranch. However when the wife saw that Herman Mace was getting to a point where he could not recover she decided to file for a divorce in order to get some of what was left of Herman Mace before it was all taken up by debt. Herman Mace however did not believe his wife had a right to his pension savings and therefore tried to strike a deal with his wife to take up all his property but leave the pension to him. However, this did not auger well with his wife therefore; he filed for bankruptcy in order to bar his wife from his pension.

It has been emphasized that debt guidance, an overseen reintegration period, financial schooling and societal assistance to discover bases of revenue and to cut-down on domestic outflows and expenses enhanced and more efficient methods are supposed to be correspondingly provided throughout this time of recuperation. Majority of the European Union Member countries, their debt release policies are habituated by a fractional payment responsibility and by a sum of requirements regarding the insolvent’s mannerisms. However, in the United States, debt release is accustomed to a smaller degree. Yet, it ought to be eminent that the range is broad in the EU, with Britain coming closest to the United States structure.

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Looking at three bodies of law that is common law, statute law and International Law we discover that they have all had effect on the various aspects surrounding this case such as Herman Mace’s ranch in Montana that Herman sold to his brother Steven; the house in Mountain View; the $10,000 check paid to Acme and the pension plan. Common laws are precedents in that they are laws that have come to be recognized as laws with time and have been used by judges to make court decisions. Statute Laws are laws that have been formed in parliament by the House of Representatives. Moral or religious law is the law that is widely accepted and practiced by everyone by virtue of our upbringing and by what the community believes to be right or wrong.

Common Law has affected house in Montana whereby Herman sold the house in Montana worth $100,000 to his brother Steven for $15,000 and a $60,000 promissory note in that Herman Mace was being dishonest by selling his house in Montana seeing that he was unable to settle his debts. This went against some set precedents. This situation of the house in Montana whereby Herman sold the house in Montana worth $100,000 to his brother Steven for $15,000 and a $60,000 promissory note was also affected by statute law in that he broke a contract and hence he was liable to damages. Moral law has also affected the situation with the house in Montana whereby Herman sold the house in Montana worth $100,000 to his brother Steven for $17,500 and a $60,000 promissory note in that it has gone against moral law as he is being dishonest and he is trying to avert paying debt.

The three bodies of law also affected the House in Mountain View whereby Herman Mace lives in this Mountain View home with his wife and children. His wife is called Doreen. This Mountain View house was owned by both Herman Mace and his wife and was worth about $500,000 although it is laden by a $400,000 loan. Statute law is the body of law that affected this house to the greatest extent whereby after the divorce settlement the e house was to be shared equally by both Herman and Doreen including payment for the loan for the house.

Common law also affected the situation of the house in mountain view that owned by both Herman Mace and his wife and was worth about $500,000 although it is laden by a $400,000 loan in that it was common law that the house was to go to the actual person who had actually bought the house which was Herman. Moral law also affected this case of the mountain view estate owned by both Herman Mace and his wife and was worth about $500,000 although it is laden by a $400,000 loan, in that morally the house should go to the mother or wife as she is usually in most cases left with the burden of raising the kids.

The pension plan was also affected by all the three bodies of law. The pension plan was a backup plan that Herman had sought for himself and amounted to $250,000 which his wife Doreen thought was also entitled to half of it but Herman was not of the same opinion. Statute law affected this pension plan in that by the fact that this was instituted when they were married it was by law that this was to be included in the divorce settlement. But due to the fact that Herman filed for bankruptcy this plan might be exempted.

Common law also affected this pension plan that was a backup plan that Herman had sought for himself and amounted to $250,000 which his wife Doreen thought was also entitled to half of it but Herman was not of the same opinion. It affected it in that it is common law that any individual who takes up a pension plan is the allowed to do anything with it individually and therefore no other party except for him has a right to this pension except for Herman according to common law.

Moral law also affected this pension plan that was a backup plan that Herman had sought for himself and amounted to $250,000 which his wife Doreen thought was also entitled to half of it but Herman was not of the same opinion. Moral law affected it in that it was not right for Doreen to demand a share on his pension that he had worked tirelessly for a lot of years, she should let her make the decision on what to do with it on him as it is his hard earned money.

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Finally the three bodies of law also affected the $10, 000 cheque paid to Acme Bolts Cutters. They had sold 1000 units of their chief and first class bolt cutting merchandises to Mace Hardware Stores. The price per unit for these merchandises was a hundred dollars. Therefore Acme owed Mace Hardware Stores $100,000. This payment was supposed to be honored 30 days after delivery. The3 units’ were shipped by Acme and delivered to Mace Hardware Stores.

However, the 30 day requirement period passed and Acme was not paid. Herman Mace who is the sole owner of Mace Hardware stores and who also owns 100 percent shares of the company had guaranteed Acme that the payment would be made to Acme 30 days after delivery of the shipment. Therefore he spoke on behalf of his organization. Nevertheless, when Holly Benson who is an employer in Acme working in the finance department of Acme involved in the collection of payments and clearing cheques, called Mace hardware Store, Herman was very rude and according to his tone it was clear he was not interested in paying up. In his conversation with Holly he first critiqued Acme for their unprofessionalism and lack of quality in their work.

He also mentioned that the economic and financial market climate was not good and therefore Acme would have to wait until things get better or settle down before Mace Hardware stores could consider paying them up. However later Herman sent a $ 10,000 cheque to them with his company’s name at the bottom. Therefore this means that Herman Mace was a different entity from his company Mace Hardware Stores which was its own entity. However, Mace Hardware Stores was not a limited company and therefore Mace was liable for all debts that the company owed. Therefore it was required by law that Mace lives up to the contract and pay the dues to Acme cutters this view is the same for all the bodies of law.

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IvyPanda. (2024, April 11). Acme Bolt Cutters in Attachment and Bankruptcy Law Case. https://ivypanda.com/essays/acme-bolt-cutters-in-attachment-and-bankruptcy-law-case/

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IvyPanda. 2024. "Acme Bolt Cutters in Attachment and Bankruptcy Law Case." April 11, 2024. https://ivypanda.com/essays/acme-bolt-cutters-in-attachment-and-bankruptcy-law-case/.

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IvyPanda. "Acme Bolt Cutters in Attachment and Bankruptcy Law Case." April 11, 2024. https://ivypanda.com/essays/acme-bolt-cutters-in-attachment-and-bankruptcy-law-case/.

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