1. Debbie Dean issued a check to Betty Brown payable to the order of Cathy Cain and Betty Brown. Betty indorsed the check, “Payable to Elizabeth East, (signed) Betty Brown.” What rights, if any, does Elizabeth acquire in the check? Explain.
2. Marcus issues a negotiable promissory note payable to the
order of Parish for $3,000. Parish raises the amount to $13,000
and negotiates it to Hilda for $12,000.
a. If Hilda is a holder in due course, how much can she
recover from Marcus? How much from Parish? If Marcus’s
negligence substantially contributed to the making of the
alteration, how much can Hilda recover from Marcus and
Parish, respectively?
b. If Hilda is not a holder in due course, how much can she
recover from Marcus? How much from Parish? If Marcus’s
negligence substantially contributed to the making of the
alteration, how much can Hilda recover from Marcus and
Parish, respectively?