Business Law II
Please answer question 9
A bank received a check to deposit in Seve's account. Seve subsequently wrote checks with-drawing most of the proceeds of the deposited check. The bank paid these checks before receiving notice that the deposited checkwas dishonored.? Explain. Andrews owed Martin, his accountant, a fee for services rendered. Andrews owed Martin, his accountant, a fee for serves rendered. Andrews drew a check on his bank payable to "Cash" and singed it. He left the amount blank because he was not Oliver found the check, filled it in for $500, and handed it to Ernest to satisfy a $500 debt and immediately presented it to the drawce bank. The drawce bank refused to cash it because of s stop payment order. Is Andrews liable to Ernest for the $500? Why? C&S Bank used Johnson to collect a $50,000 note, Johnson had signed the note paybale to Peek. Peek had transferred the note to the bank as security for a $20,000 loan. Johnson secks to assert a defense of fraud and lack of consideration. Is the bank a holder in due course? Why or why not? Nevers executed a note payable to the order of Young due on January 1, 2006, On March 1, 2006, Young negotiated the note to Glassen. Will Glassen be subject to the personal defenses of Neverns ? Why? Wells issued a check on its account at First National Bank payable to the order of Tayman in the amount of $4,200. Wells stopped payment on the check early the next banking day. Later that day, Tayman attempted to cash the check at First National, and when payment was refused, he took the check to his own bank, Second National which cashed it. Is Second Natioanl a holder in due course? Why or why not? Arthur purchased securities from William, giving William his check payable to Williams' order and drawn on Produce Bank in payment. William immediately endorsed the check to the order or Robert, Robert accepted it in payment of a debt owed him by William. Robert indorsed the check in blank and delivered it to his son, Charles, as a birthday gift, Arthur has discovered that the securities sold him by William are worthless and has directed Produce Bank to stop payment. When Produce Bank refuses to pay Charles on the check and Charles sues Arthur, may Arthur assert the defense of failure of consideration against Charles? Explain. Hilda executed a note payable to Home Improvident, Inc., for various improvements to her house. The company negotiated the note to a bank, which sued Hilda. If bank is a holder in due course, can Hilda raise the defense that Home Improvements make several material misrepresentations in inducing her to sign the note? Explain. Smith delivered to Janett his check drawn on National Bank payable to Janett. Janett had the check certified and delivered it to Cook as payment on account. The certification was stamped on the face of the check. It said "Certified paybale as originally drawn. "The original check was of r$1,000. Janett had raised the amount to $4,000 prior to the certification. No one but an expert would have realized that the check had been raised. How much can Cook collect on the check? How much can the bank charge to Smith's account? Explain