Book Opener

In each case that follows, you be the judge.27. Indorsement AuthorityRefrigerated Transport Co., Inc. employed a collection agency to collect some of its overdueaccounts. The collection agency indorsed, without authority, checks made payable toRefrigerated Transport and deposited them in the agency’s own checking account. Was thebank that accepted the checks for deposit a holder in due course? Why or why not?Nat’l Bank v. Refrigerated Transp., 248 S.E.2d 496 (GA).28. Transferring NotesJohn and Beverly Girner executed a $5,000 promissory note payable to the order of FirstRealty Corporation. The note was to be paid in monthly installments. First Realty transferredthe note to Imran Bohra in exchange for property. When the note was six months past due,Bohra transferred the note to his attorney in exchange for legal services and told the attorneythat the note was past due. Is the attorney a holder in due course? Why or why not?Richardson v. Girner, 668 S.W.2d 523 (AK).Legal LingoToyka and Lindsay are taking a business law coursetogether in high school. This week they have beenlearning about negotiable instruments and thecollection of those instruments. Lindsay oftenstruggles with all of the legal vocabulary, so Toykahas decided to help her by locating online legaldictionaries that Lindsay and other classmatescould use.ConnectUsing a variety of search engines:29. Create a list of at least five Web sites that offerlegal dictionaries.As a class, combine the sites to create a comprehensivetool that all the students can use.30. Predict Why do you think holders in duecourse are treated more favorably thanholders?31. Connect What would you do if a friendforged a check to be used as payment fora new DVD player?32. Question Why are personal defensessometimes called limited defenses?33. Respond What are some of the reasonsa bank would dishonor a negotiableinstrument?Chapter 26: Collecting Negotiable Instruments 575