Reference - Run Around

question 44

Multiple Choice

Reference - Run Around. Millie issues a note to Bob. Bob endorses the note and transfers it to Anne. Anne endorses the note and transfers it to Henry. In a timely fashion, Henry endorses the note and presents it to Millie for payment. When Henry presents the note to Millie, she asks him for reasonable identification. He did not have any identification with him and told her that she had no right to dishonor the instrument. Millie, however, refused to provide him the funds until he returned with proper identification. Nevertheless, when he returned with proper identification, Millie refused to pay the note, claiming that she lacked the funds with which to do so. Henry proceeded immediately to request that Anne pay the note, but she told him that he would have to get his money from Bob, who cannot be found. Which of the following is the likely result if Henry sues Anne, Bob, and Millie?

• A) The judge is likely to rule that Henry can recover from Anne, Bob, or Millie.
• B) The judge is likely to rule that Henry's only option of recovery is against Millie.
• C) The judge is likely to rule that Henry's only option of recovery is against Anne.
• D) The judge is likely to rule that Henry can recover against Bob and that Bob may recover against Millie, but Henry cannot recover directly from Anne.
• E) The judge is likely to rule that Henry's only option for recovery is against Bob.

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