Book Opener

CHAPTERASSESSMENTInterpreting and CommunicatingInformationInterview the managers of two local businesses,either in person or on the phone, about:16. What their check policies are.17. The reasons for those policies.As a class, compare your findings.Altered CheckFatima gave your friend Isabel a check for $4as payment for a book. Isabel alters the checkand endorses it over to a finance company,presenting it as a $400 payment on her car.Debate18. Who is the holder in due course?19. Is there a holder through a holder in duecourse?20. Does the shelter provision apply?21. Explain the primary and/or secondaryliability in this situation.Explain all of your answers.For the following cases, give your decision andstate a legal principle that applies.22. Cynthia, a minor, purchased a used truckfor $1,500 from a dealer. In payment, shegave $500 in cash and a promissory notefor the balance to be paid in three months.The dealer indorsed the note and negotiatedit to a bank. A week later, Cynthia wasinvolved in an accident, and the vehiclewas damaged beyond repair. Must Cynthiapay the amount of the note to the bankwhen it is due? Why or why not?23. Moynihan executed and left on her desk anote made out to Pappas. Moynihan owedPappas the money specified on the note forthe purchase of a lawn tractor. Pappas wasadmitted to Moynihan’s office, saw the notemade out to her, picked it up, and departedwithout seeing Moynihan. Pappas negotiatedthe note to her bank through indorsementand delivery. When the bank presentedthe note for payment, Moynihan refused,claiming she had not delivered the note tothe indorser. Did Moynihan have a defenseagainst the bank? Why or why not?24. Daniel, a minor, gives Carmenza a $200check in payment for a VCR. Daniel usesthe VCR over the weekend, decides toreturn it, and stops payment on the check.Carmenza cashes the check at her bank,which becomes a holder in due course.What defense, if any, may Daniel useagainst Carmenza’s bank if suit is broughtfor payment of the money?25. Steve forges the name of Joanne Newman,a well-known merchant, on a $500 note.He then negotiates the note to WilliamKester, an innocent purchaser, for value.Kester sues Newman when payment isrefused at maturity. Is Newman required topay the note? Why or why not?26. Louise Torelli presented a note to DukeFairfax for payment on the due date. Fairfaxhad become insolvent and could not honorthe note. There were four indorsers on thenote, and Torelli gave notice of dishonor tothe indorser immediately ahead of her. Thatindorser failed to give notice to the otherindorsers. If Torrelli cannot collect from theindorser to whom notice was given, mayshe then proceed against each of the othersfor payment? Explain your answer.574 Unit 5: Using Your Purchasing Power