Snidely Whiplash is a real estate developer whose latest venture is Shady Pines, an LLC he set up in 2016 to raise capital to develop a 300-acre parcel of land. When completed, Shady Pines will have 100 one-family homes, a recreation center, swimming pools, tennis courts, and a golf course. Snidely assures potential investors that Shady Pines will be highly protable. Reno Sweeney purchases an interest by giving a note to Shady Pines LLC in the amount of

$100,000.00, 5% interest per year payable semi-annually, principal payable on April 30, 2021. Reno discovers in March 2021 that Snidely convinced investors, including Reno, to invest in Shady Pines using falsied nancial statements.

Answers must show that you have found the legal issues presented by the essay; that you know the legal principles to be applied; and that you are familiar with the appropriate legal terms.

A. Shady Pines presents the note to Reno Sweeney for payment on April 30, 2021; Reno refuses to pay and defaults. Shady Pines sues Reno Sweeney to enforce the note under UCC 3-412.

Will Reno Sweeney have to pay Shady Pines the amount due on the note?

B. Assume instead that on June 1, 2016, Shady Pines sold the note to Remington Steele for $92,500.00, and on December 25, 2017, Mr. Steele gives the note to his girlfriend, Laura Holt, and says "Merry Christmas". Laura holds the note to maturity and presents it to Reno Sweeney for payment on April 30, 2021; Reno refuses to pay and defaults. Laura sues Reno Sweeney to enforce the note.

Will Reno Sweeney have to pay Laura the amount due on the note?