II. Hari Holda received a check from his sister in return for a used stereo. She had received it from Steve Stevens a few days before she gave it to her brother. It was given to her in return for a promise to paint Stevens house. The check was drawn by Darwin, Inc. on First Bank in the amount of $1,500.00 and was originally payable to Penny Paul for salary due her. It had the following endorsements on the back.

1. s/Penny Paul

2. Without Recourse

s/Ed Esquire

3. Pay to Nanci Holda

s/Steve Stevens

4. Pay to Hari Holda

When Nanci gave the check to Hari she forgot to sign her name. Before Hari could get his sisters signature he learned that Penny Paul had been fired from her job for submitting a fraudulent time sheet. Hari then located his sister and got her to sign the back of the check. He then endorsed the check and deposited it in his account at Second Street Bank only to have it returned to him two days later since it was dishonored by First Bank pursuant to Darwins stop payment order.

(15) 2. Discuss in detail what, if any, recourse Hari has against ALL the other

Parties. Provide specific legal reasons for your conclusions.

(5) 3. What should Hari do to protect his legal rights when he receives the check from Second Street Bank?