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LeVoe wrote a check for $1,200 to the order of Henry Smith and delivered it to Smith in payment for a used car that Smith

LeVoe wrote a check for $1,200 to the order of Henry Smith and delivered it to Smith in payment for a used car that Smith said had a rebuilt engine. Smith indorsed the check and delivered it to Kraus. LeVoe stopped payment on the check when she discovered that the engine had not been rebuilt. Analyze the case thoroughly.

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