3. (TCO E, H) Florida theme parks sell tickets as single or multi-day passes. Multi-day passes allow the customer to use the same ticket for as many days as are purchased. The usage does not have to be continuous, and many tourists who visit theme parks take their unused multiday tickets home for future visits, as they do not expire.

In spite of a local law that prohibits reselling of unused multi-day passes, several businesses advertise and resell the tickets to unsuspecting tourists at a discount. The tickets are doctored by using chemicals to remove the name of the person to whom it was originally issued. Resale operations result in substantial losses to theme parks, and if caught, the user of the ticket is out of money and may have a ruined vacation. In spite of arrests and strategies to close down these businesses, including stories in the local papers, they continue to thrive.

Homer Simpson, who had no knowledge resale of tickets was illegal, is on vacation with his family to the theme parks, and purchases four multi-park passes from a reseller via check in the sum of $400.00. The reseller promptly negotiates and endorses the check to George Jetson in payment of his regular chemical delivery.

Upon arrival at the park, Homers tickets were confiscated and Homer was stuck purchasing new tickets. Homer promptly stopped payment on the $400.00 check, and is now being sued by George Jetson, who claims he is a holder in due course. The reseller claims that Homer must have done something wrong with the tickets. He threatens Homer with jail for passing a bad check. Homer is totally stressed. Answer the following questions fully.

i. Is George Jetson a holder in due course? What about the reseller? Explain what defines a holder in due course and how you reached your conclusion.

ii. Did Homer pass a bad check to the reseller? Explain how you reached your conclusion including defining bad check.

iii. The accounting firm that audits the resellers books is served with a subpoena by the state to testify and produce its work papers as to the resellers finances and activities. The jurisdiction in question follows the common law rule. Must the accountant testify and produce the documents in question? Explain your answer fully. (Points : 50)