TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choi for $100,000 by cashier's check. Choi then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC's requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent lawsuit:
A) the court will find that the third party liable as surety
B) because of the fraud involved, the court will require the third party repay Choi
C) because the instrument involved was a cashier's check and not an ordinary check, the court will not require the third party to repay Choi
D) because the amount in controversy was more than $50,000, the courts will be empowered to view the fraud as a felony and will ignore the requirements of the UCC
E) none of the other choices
Correct Answer:
Verified
Q207: Payment practices vary around the world. Islamic
Q208: If a negotiable instrument is assigned, the
Q209: A(n) _ has the same contract responsibilities
Q210: Which of the following requirements is necessary
Q211: If an instrument is found to be
Q213: To transfer an instrument made "to the
Q214: To transfer an instrument made "to the
Q215: If an instrument is determined to be
Q216: To be found a holder in due
Q217: Which of the following requirements is necessary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents