Question
Cassandra Demery worked as a bookkeeper at Clinton Georgs business Freestyle until he discovered she had embezzled over $200,000 and failed to pay $240,000 of
Cassandra Demery worked as a bookkeeper at Clinton Georgs business Freestyle until he discovered she had embezzled over $200,000 and failed to pay $240,000 of Freestyles taxes. Georg fired Demery and demanded repayment. Demery went to work for her parents firm Metro Fixtures. She wrote a check to Freestyle for $189,000 on Metros account without authorization and deposited it directly into Freestyles account, telling Georg that it was a loan to her from her family. When Metro discovered Demerys theft, it filed a suit in a Colorado state court against Georg and Freestyle for conversion. The court issued a summary judgment in Freestyles favor. On Metros appeal, a state intermediate appellate court reversed. Georg and Freestyle appealed.
a) Who was the drawer drawee and payee on the instrument?
b) Was Freestyle a Holder in Due Course? Why or why not?
Thanks!
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