On July 1, 2022, JANE executed a check to SALLY in the sum of $1,500.00 in exchange for SALLY's television. There was nothing wrong with the television. It worked fine. SALLY immediately indorsed the check with a blank indorsement. However, SALLY immediately lost the check and asked JANE to give her another check. JANE refused. KATIE found SALLY's lost check, but rather than to return it to SALLY, on July 3, 2022, KATIE indorsed and negotiated the check to SUSIE as a gift. Next to KATIE's indorsement, KATIE added the words "Without Recourse". On July 5, 2022, SUSIE presented the check to JANE's bank for payment. On July 6, 2022, the bank notified SUSIE that they would not honor the check and refused to pay it saying that JANE had told them not to pay because SALLY had lost the check and that SUSIE had no rights to it. SUSIE told KATIE and SALLY about JANE's refusal to pay on July 7, 2021. SALLY also sues JANE and KATIE claiming she should get her $1,500.00 from one or both of them because she lost the check and was never reimbursed for it

Question - Part 2 SUSIE vs. KATIE and SALLY (Payment of the Check) SUSIE also sues KATIE and SALLY for payment on the Check. Discuss any Defenses that KATIE and SALLY could use to avoid having to pay SUSIE the Check. Who should prevail in each of these lawsuits and why? Set forth the exact LAW(s) and definitions which apply to each Defense that you discuss. Question - Part 3 SALLY vs. JANE and KATIE (Payment of the Check) SALLY also sues JANE and KATIE claiming that she should receive her $1,500.00 from one or both of them because she lost the Check and was never reimbursed for it. What Defenses, if any, could JANE or KATIE use to avoid having to pay SALLY on the Check? Set forth the exact LAW(s) and definitions for each Defense which JANE or SUSIE could use to support their position that they do not have to reimburse SALLY the $1,500.00