Question
Mike orders fifty laptops from Kobe on January 26 2020. As payment, Mike gives Kobe a promissory note that states, I, Mike Jordan, promise to
Mike orders fifty laptops from Kobe on January 26 2020. As payment, Mike gives Kobe a promissory note that states, "I, Mike Jordan, promise to pay to Kobe Bryant, the amount of two hundred and fifty thousand dollars on or before June 9 2020." The Note is signed and dated.
On March 5 2020, Kobe sells the promissory note to Zion Wilt for 150,000 dollars because Kobe is in need of funds to complete Mike's order. Kobe indorses the note, "Pay to Zion Wilt, without recourse", and signs it "Kobe Bryant".
On April 1 2020, Zion gives the note to his daughter Britney as a wedding gift. Zion indorses the note, by signing his signature " Zion Wilt ".
On June 9 2020, Britney presents the note to Mike Jordan for payment. Mike refuses to pay the note. Mike advises Britney that he is not going to pay the note because Kobe breached the contract because Kobe delivered laptops that did not work, and the ones that did boot up were full of viruses. Mike advised Britney that he had sent all the laptops back to Kobe on March 1 2020. Mike refused to pay to Britney the 250,000 dollars stated in the promissory note.
ANSWER THE FOLLOWING QUESTIONS about the above Scenario:
- What is the legal significance of the words in Kobe's indorsement to Zion. (5 pts).
- What is the legal significance of the words in Zion's indorsement to Britney. (5 pts)
- State and explain the UCC RULES that govern the issue of whether Mike is required to pay Britney the 250,000 dollars stated in the promissory note. (25 pts).
- Apply the rule that you just explained to the facts of this scenario and answer the question of whether the U.C.C. requires that Mike pay the 250,000 dollars to Britney. (15 pts).
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