TP Sells Franchises in the Old Fast Food Chain

question 365

Multiple Choice

TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choi for $100,000 by cashier's check. Choi then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC's requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent lawsuit:

• A) the court will find that the third party is a holder in due course and, despite the fact that TP has defrauded Choi, not require the third party to repay Choi
• B) because of the fraud involved, the court will require the third party repay Choi
• C) because the instrument involved was a cashier's check and not an ordinary check, the court will not require the third party to repay Choi
• D) because the amount in controversy was more than $50,000, the courts will be empowered to view the fraud as a felony and will ignore the requirements of the UCC
• E) none of the other choices

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Definitions:

Systematists

Systematists are scientists who study the classification and evolutionary relationships among organisms, organizing them into systems of taxonomy.

Evolutionary Relationships

Descriptions of how different species are connected to each other through common ancestors, detailing the path of divergence and speciation.

Convergent Evolution

A process where organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Homology

The existence of shared ancestry between a pair of structures, or genes, in different species.