QUESTION 1 On November 1, 2020, JANE bought a big screen Television from PAUL. To purchase the T.V., JANE gave PAUL a check for $1,500.00. JANE took the T.V. home and found that it would not work. Meanwhile, on November 3, 2020, PAUL negotiated (indorsed) the check to DREW in exchange for DREW's riding lawnmower. On November 8, 2020, DREW negotiated the check to JIM as a gift. On November 11, 2020, JIM presented the check to JANE's bank for payment. The bank refused to pay the check because JANE's T.V. did not work. The bank returned the check to JIM and told him of their refusal to pay the check on November 12, 2020. On November 14, 2020, JIM notified DREW that the check had been dishonored. On November 19, 2020, DREW notified PAUL of the notice of dishonor. Answer - Part 1 JIM now sues JANE to force JANE to pay the Check. What defenses could JANE use to avoid having to pay JIM the Check? What would JIM's responses be to JANE's defenses? Who would prevail and why? Set forth the Law in discussing your answer. Answer - Part 2 JIM also sues DREW and PAUL for payment of the check as well. What, if any, defenses could either DREW or PAUL use to avoid having to pay the Check to JIM? Would their defenses be successful? Who would prevail in each of these suits and why? Set forth the Law in discussing your answer. D QUESTION 1 On November 1, 2020, JANE bought a big screen Television from PAUL. To purchase the T.V., JANE gave PAUL a check for $1,500.00. JANE took the T.V. home and found that it would not work. Meanwhile, on November 3, 2020, PAUL negotiated (indorsed) the check to DREW in exchange for DREW's riding lawnmower. On November 8, 2020, DREW negotiated the check to JIM as a gift. On November 11, 2020, JIM presented the check to JANE's bank for payment. The bank refused to pay the check because JANE's T.V. did not work. The bank returned the check to JIM and told him of their refusal to pay the check on November 12, 2020. On November 14, 2020, JIM notified DREW that the check had been dishonored. On November 19, 2020, DREW notified PAUL of the notice of dishonor. Answer - Part 1 JIM now sues JANE to force JANE to pay the Check. What defenses could JANE use to avoid having to pay JIM the Check? What would JIM's responses be to JANE's defenses? Who would prevail and why? Set forth the Law in discussing your answer. Answer - Part 2 JIM also sues DREW and PAUL for payment of the check as well. What, if any, defenses could either DREW or PAUL use to avoid having to pay the Check to JIM? Would their defenses be successful? Who would prevail in each of these suits and why? Set forth the Law in discussing your answer. D
