On January 2, 2006, Martin, seventeen years of age, as a result of Dealer's fraudulent misrepresentation, bought
Question:
On January 2, 2006, Martin, seventeen years of age, as a result of Dealer's fraudulent misrepresentation, bought a used motorboat to use in his fishing business for $2,000 from Dealer, signed an installment contract for $1,500, and gave Dealer the following instrument as down payment:
Dated: 2006
I promise to pay to the order of Dealer, six months after date, the sum of $500 without interest. This is given as a down payment on an installment contract for a motorboat.
(signed) Martin
Dealer, on July 1, sold his business to Henry and included this note in the transaction. Dealer indorsed the note in blank and handed it to Henry, who left the note in his office safe. On July 10, Sharpie, an employee of Henry, without authority stole the note and sold it to Bert for $300, indorsing the note “Sharpie.” At the time, in Bert's presence, Sharpie filled in the date on the note as February 2, 2006. Bert demanded payment from Martin, who refused to pay. What are Bert's rights against Martin?
DealerA dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
Step by Step Answer:
Essentials of Business Law and the Legal Environment
ISBN: 978-0324303957
9th edition
Authors: Richard A. Mann, Barry S. Roberts