Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 22

Roy Rand executed and delivered the following note to Sue Sims: ''Chicago, Illinois, June 1, 2013; I promise to pay to Sue Sims or bearer, on or before July 1, 2013, the sum of $7,000. This note is given in consideration of Sims's transferring to the undersigned title to her 2005 Buick automobile. (signed) Roy Rand.'' Rand and Sims agreed that delivery of the car be deferred to July 1, 2013. On June 15, Sims sold and delivered the note, without indorsement, to Karl Kaye for $6,200. What rights, if any, has Kaye acquired?