Joan Made a Promissory Note Payable in the Amount of $1,000

question 6

Essay

Joan made a promissory note payable in the amount of $1,000 to Thomas. Since Thomas owed approximately $1,000 to an acquaintance, William, Thomas gave the note to William having inscribed on the back of it "I transfer all my rights in this note." William was not aware of the provisions in the Bills of Exchange Act. When William attempted to collect upon the promissory note from Joan, it was dishonoured, and the bank told William it did not know of Joan's whereabouts. William sought recourse against Thomas on the basis of his endorsement. Thomas pleaded he had transferred his rights in the note to William without any warranty or recourse, and the endorsement constituted only an assignment of his interest in the note and not an endorsement under the terms of the Bills of Exchange Act.
Discuss the issues raised in this case and render a decision.

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Definitions:

Long-run Cost Function

A mathematical representation that shows the lowest possible cost of producing different levels of output when all input factors can be varied.

Experience

The knowledge or skill acquired by a period of practical involvement in or exposure to events or activities.

Units Produced

The total quantity of products manufactured or produced by a company or an industry within a specific period.

Variable Cost Function

A mathematical representation of the variable costs incurred by a firm, showing how these costs change with the level of output.