Suzy Gets Joe to Fix Her Computer While She Is

question 6

Essay

Suzy gets Joe to fix her computer while she is on vacation. Because she does not know how much the job will cost, she gives Joe a signed blank check with Joe as the payee. Joe, of course, is supposed to fill in the correct amount and cash the check at Suzy's bank. The job cost $200, but Joe fills out the check for $10,000 and then negotiates it to Harry. Harry takes the check in good faith, for value, and without notice of the false addition. Assuming that Suzy's bank does not pay to Harry and Harry pursues her on her secondary liability, does Suzy have an alteration defense against Harry?

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Definitions:

Capital Outlay

Expenditure for acquiring, maintaining, or improving fixed assets such as buildings, equipment, or land, that have a long-term use or value.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Post-audits

Reviews conducted after the completion of a project or process to assess its success, efficiency, and adherence to budget and timelines.

Cash-flow Projections

Financial forecasts that estimate the amount of money expected to flow in and out of a business over a specific period, helping in liquidity planning and management.