case analysis

kfld1981

Sam Smart and Susie Slow started a business which fixes computers. Sam does all the work but Susie' name is on the letterhead.To finance one of the computers, Sam contacts The Bank of the World and gets financing. Only Sam signed the promissory note. The bank took the computer as collateral but never filed anything.Although the computer is used for the business, Susie keeps it at her home and uses it for personal amusement as well. Susie later had problems with the computer. It seemed to work when she purchased it but later the computer would never fully turn off. Sam makes an error while fixing someone’s computer and is sued..Rather than face the lawsuit, Sam files for bankruptcy