Lucky loses in a high-stakes poker game to Fat Chance.To pay his debt,Lucky writes a check to Fat Chance,who negotiates the check to Convenient,who then tries to cash the check at Lucky's bank.Lucky has already stopped payment on the check,so the check is not honored by her bank.Convenient then tries to collect the check by suing Lucky.High-stakes poker games are illegal in this state.Which statement is correct?
A)If Convenient can demonstrate that he is a holder in due course, he will prevail.
B)If Convenient can demonstrate that he was a buyer in the ordinary course of business, he will prevail.
C)If Convenient can demonstrate that he gave value without notice, he will prevail.
D)Convenient will not prevail.

Question

Quizplus · Accepted Answer

The high-stakes poker game being illegal means that the transaction was void from the beginning, and therefore the check given by Lucky to Fat Chance is also void. Convenient cannot be considered a holder in due course or a buyer in the ordinary course of business if the underlying transaction (the poker game) was illegal. Therefore, Convenient cannot collect on the check and will not prevail in the lawsuit.

Lucky Loses in a High-Stakes Poker Game to Fat Chance