Michael Issues a Check to Paula

question 9

Essay

Michael issues a check to Paula. She negotiates the check to Harold as payment for a used television. Harold has no notice of any claims or defenses and takes the check in good faith. Harold indorses the check and gives it to his son as a birthday present.
a. Is Harold's son a holder in due course? Explain.
b. What rights does Harold's son have with respect to the check? Why? Explain.
cAssume that Michael has a personal defense of fraud in the inducement against Paula. Can he use that defense against Harold? Can he use that defense against Harold's son? Explain.

---

Definitions:

NAFTA

The North American Free Trade Agreement (NAFTA) was a treaty entered into by the United States, Canada, and Mexico; it has been replaced by the USMCA. It aimed to eliminate barriers to trade and investment.

Economic Dislocations

Situations where an economy experiences inefficiency due to factors such as technological change, policy alterations, or market shifts.

Recruitment Process

The series of actions taken by an organization to identify and hire new employees effectively.

Preliminary Contact

An initial interaction or communication made to establish a connection or start a process, often before formal negotiations or agreements.