Harrison obtained from Bristow his $11,500 check drawn on the Union National Ban

Question

Harrison obtained from Bristow his $11,500 check drawn on the Union National Bank in payment for bogus uranium stock. His immediately negotiated it by a blank indorsement to Dunlop in return for $1,000 in cash and her chek for $10,400. Dunlop qualified as a holder in due course. She deposited the check in her checking account in the Oceanside Bank. Upon discovering that the stock was boguws, Bristow notfied Union National to stop payment on his check, which it did. The check was returned to Oceanside Bank, which in turn debited Dulop's account and returned the check to her.

A. Can Dunlop recover the $11,500 from Union National Bank? Explain

B. Can Dunlop recover the $11,500 from Bristow? Explain

Explanation / Answer

Answer:A) Dunlop can not recover the $11,500 from Union National Bank because Bristow’s stop payment order was valid in that the defense was only a personal defense.

Answer:B) Dunlop can recover $11,500 from Bristow despite the stop order because she qualified as a holder in due course

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.