TP Sells Franchises in the Old Fast Food Chain

question 415

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 liable as surety
• 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:

Patient's Safety

Measures and protocols in place to protect patients from medical errors, injuries, accidents, and infections during healthcare delivery.

Working Hours

The scheduled period during which an employee is obligated to perform their job duties.

Good Samaritan Law

Legal protections for individuals who voluntarily provide emergency care to ill or injured persons without expectation of compensation.

Clinic Nurse

A nursing professional who works in a clinic setting, providing patient care, support, and education under the direction of a physician or nurse practitioner.