Which of the following was the result in the Case Opener,involving the check taken in good faith by a market,later returned to the market based on a stop payment order,and purchased from the market by the plaintiff who sued Cigna,the issuer of the check?
A)The plaintiff was allowed to recover under the shelter principle and holder-in-due-course status.
B)The plaintiff was not allowed to recover because the market misrepresented the status of the check.
C)The plaintiff was allowed to recover because the market misrepresented the status of the check.
D)The plaintiff was not allowed to recover because of the shelter principle and holder-in-due-course status.
E)The plaintiff was not allowed to recover because he took the check knowing of a problem.

Question

Quizplus · Accepted Answer

A)Even though the plaintiff knew the check was dishonored when he purchased it,
he still was able to receive payment under the shelter principle and
holder-in-due-course status.As recognized by the court,the transfer by a holder in due course to a third party,even one with notice of the dishonor,transfers all rights of the holder in due course to the successor in interest.
B)Even though the plaintiff knew the check was dishonored when he purchased it,he still was able to receive payment under the shelter principle and
holder-in-due-course status.As recognized by the court,the transfer by a holder in due course to a third party,even one with notice of the dishonor,transfers all rights of the holder in due course to the successor in interest.

Which of the Following Was the Result in the Case