Who can recover an amount for its loss?

Instructional Objectives for this activity:
Paraphrase creditors’ rights, remedies, and insurance as a component of risk management.

Eagle Sales Company owns a warehouse, subject to a mortgage obtained from First National Bank. Separately, Eagle and First National obtain insurance policies from Good Hands Insurance, Inc., to cover the warehouse. Later, Eagle sells the property to Interstate Distribution Corporation but keeps the insurance policy. First National agrees to act as Interstate’s mortgagee, and Interstate obtains an insurance policy from Good Hands to cover the property. A fire totally destroys the warehouse.

Who can recover an amount for its loss?

This individual work should include the following:

  • An in-depth submission that should be free of spelling and grammar errors.
  • An essay containing a minimum of 200 words.
  • You will be assessed on the rationale you use in addressing the questions/issue posted, and how well you justify your argument regarding this issue.
  • Your response must be thought provoking, have well developed ideas and/or opinions, and should reference any supporting material from the text, lecture or other sources you have used to complete the assignment.

You may use your text or the internet as a reference, but remember to cite your sources according to APA guidelines.

 For citation guidelines, please refer to the table in the APA Style section of the syllabus.

 

Reference

 

Hollowell, W.E. & Miller, R. L., (2014).  Business law text & exercises. (7th ed.) South-Western, Cengage Learning.

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