52.
(p. 597)
Which of the following is the principle that if an item is transferred from one person to
another, the transferee acquires all the rights to transfer or have in the item?
53.
(p. 599)
Susan purchased a refrigerator from ABC Appliance store for $800. She takes the
refrigerator home and discovers that it is defective. She calls ABC Appliance store and tells them
that she would like to return the refrigerator. ABC Appliance store tells her that they have
assigned the promissory note she provided the store in order to purchase the refrigerator to a
finance company and that the finance company, as a holder in due course, is not subject to
defenses. Which of the following is true regarding the rights of parties?
54.
(p. 591)
Which of the following was the result in
Michael J. Kane, Jr. v. Grace Kroll
, the case in the
text in which the defendant issued a check to the plaintiff to cover the plaintiff’s sale of cows to
the defendant’s son, but later stopped payment on the check because her son said he could not
repay her?
55.
(p. 583–585)
What type of endorsement did Susan make on the back of the check?
56.
(p. 583)
Was the check properly delivered to Shifty?
57.
(p. 585)
Would the school be able to require that Susan cover the amount of the check based on
the law of negotiable instruments?
58.
(p. 589)
Which of the following is true regarding Mary’s claim that the endorsement by Annie was
illegal because the note misspelled Annie’s name?
59.
(p. 589)
Which of the following is true regarding the complaint of Mary that she did not also
endorse the instrument?
60.
(p. 585)
What is the effect of the designation, “Bill Brown, without recourse?”
61.
(p. 593)
Which of the following is true regarding the status of Sam?
62.
(p. 582, 593)
Which of the following is true regarding Sam’s rights in relation to the check?
63.
(p. 596)
What is the effect of Susan receiving notice the day after she cashed the check for Bob
that the check had been stolen?
64.
(p. 596)
What is the effect of the alteration of the check on Susan’s status as a holder in due
course?
65.
(p. 596)
What is the effect on Susan’s status as a holder in due course in taking the check from
the customer that was four months old?
66.
(p. 590)
Susan, who owned a pet store, bought a number of dog leashes from a business called
Happy Paws in Florida. Susan, who was somewhat unorganized, was very busy and told her
assistant, Zach, to pay her bills, including the bill she owed to Happy Paws. Susan had lost the
invoice. She knew that she owed Happy Paws $1,000, and simply told Zach to send Happy Paws
$1,000. She told Zach she did not know the address, but that he should be able to find it on the
Internet. Zach checked on the Internet and found a listing and an address for a company called
Happy Paws in North Carolina. Zach, therefore, sent the check for $1,000 to Happy Paws in North
Carolina. The bookkeeper for Happy Paws in North Carolina did not act in bad faith and thought
that the check was for goods sent to Susan. The treasurer endorsed Susan’s check along with a
number of other checks to ABC Financing Company in order to receive operating funds. Happy
Paws in North Carolina was not affiliated with the Florida Happy Paws. In fact, Happy Paws in
North Carolina sold booties for children. Happy Paws in North Carolina was also in financial
difficulty and went bankrupt. Happy Paws in Florida contacted Susan regarding the $1,000 they
were owed. Susan and Zach then discovered their mistake. They requested that Happy Paws in
North Carolina refund the money, but bankruptcy prevented that. Susan then attempted to get
the funds returned from ABC Financing. What is the most likely result regarding Susan’s attempt
to receive the funds from ABC Financing and why?
67.
(p. 586)
Barry is sending his brother-in-law and agent, Richard, who he does not particularly trust,
to deposit into Barry’s business bank account a check belonging to Barry. What is the best way
for Barry to endorse the check to attempt to limit any misappropriation?
68.
(p. 598)
Discuss whether or not you believe that our law should recognize holder in due course
status with its resulting rights.
69.
(p. 590)
Set forth the requirements a party must meet in order to be considered a holder in due
course.
70.
(p. 594)
Set forth the five conditions under which a holder may take an instrument for value.