Business Law II

Because of fraud by Sharp, Simpleton writes a check to Sharp for $1,000 in return for a defective computer. Sharp negotiates the check payable to Trusty, who qualifies as a holder in due course. How can Trusty qualify as a holder in due course? Why does the distinction between order paper and bearer paper matter so much in the law of negotiable instruments? Explain fully Pete Payee specially indorses a note payable to his order and also uses the words "without recourse". What is the effect of the words "without recourse" on a negotiation? Explain fully