Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sam gives a check to Blake Diamonds (BD) to buy a certain diamond which is currently being appraised from a third party for his fiancee

Sam gives a check to Blake Diamonds (BD) to buy a certain diamond which is currently being appraised from a third party for his fiancee Layla.The appraisal is taking longer than expected so BD asks Sam to allow BD to fill in the amount when the appraisal is complete.Sam agrees. BD receives the appraisal of $7,000 and buys the diamond from the third party for that price, but fills in the check for $8,000. The check is negotiated as a good faith payment for an $8,000 debt to Mowit Landscaping Services, who does not know about BD's wrongful act.One week later, Mowit learns that BD wrote the check for $1,000 over the appraisal price without authorization.

1.Is Mowit a Holder in Due Course?Thoroughly explain

2.If Mowit is an HDC, for how much?If Mowit is not an HDC, explain what it would take to reach HDC status.Thoroughly explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

12th edition

1259918947, 1260091908, 978-1259918940

More Books

Students also viewed these Accounting questions

Question

2. How do I perform this role?

Answered: 1 week ago