Question
Debbie Downer owned a 2004 Toyota Camry that she drove a total of 156,742 miles. She tampered with the automobile's odometer to read 56,742 miles
Debbie Downer owned a 2004 Toyota Camry that she drove a total of 156,742 miles. She tampered with the automobile's odometer to read 56,742 miles and then sold the car to Jason Jones for $2,500.00. Jason paid Debbie $250.00 cash and made the following promissory note to Debbie:
December 1, 2018
On or before one (1) year after date I, Jason Jones, promise to pay to the order of Debbie Downer TWO THOUSAND TWO HUNDRED FIFTY and 00/100 DOLLARS ($2,250.00) with interest from date at the rate of six percent (6%) per annum, principal and interest paid in lawful money of the United States.
X Jason Jones
On December 10, 2018, Debbie sold the note for $1,900.00 to Eric Edelson, who did not know that Debbie tampered with the car's odometer. Debbie endorsed the note and handed it over to Eric. Eric went home, indorsed the note, and gave it to his son Deric as a birthday present.
Here is how the endorsements appeared on the back of the note:
Pay to the Order of Eric Edelson
Debbie Downer
Eric Edelson
Jason brought the car to his mechanic, who told Jason that he discovered someone tampered with the odometer.
On December 1, 2019, Deric presented the note to Jason demanding payment, which Jason refused.
1a. What type of indorsement did Debbie make?
1b. What type of indorsement did Eric make?
1c. Deric sues Jason to enforce the note and collect $2,385.00 ($2,250.00 principal + $135.00 interest). Who wins? Explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started