Legal Environment 4th Edition by Jeffrey Beatty, Susan Samuelson

Exercise 1

Sam Kay signed a promissory note for $220,000 that was payable to Investments, S.A., Inc., a company of which he was the principal stockholder. The company then indorsed the note over to its lawyers, Arthur B. Cunningham and Philip T. Weinstein, to pay past and future legal fees. Kay claimed the company owed $3,557.53 in fees; the lawyers testified they had performed "more than $20,000" worth of work on the date they received the note. Were the lawyers holders in due course?