Question: In this bankruptcy case the court had to determine whether
In this bankruptcy case, the court had to determine whether an LLC should have been considered a purchaser of instruments or a holder in due course under the UCC. Yale, the company that purchased the instruments through bankruptcy, did not establish that it acted in good faith in purchasing the instruments by observing reasonable commercial standards of fair dealing. However, Yale was a holder of a complete and authentic negotiable instrument and took the instrument for value. Based on these facts, can Yale be a holder in due course of the instruments? If not, what requirement(s) for being a holder in due course is (are) not met?
Answer to relevant QuestionsA business associate of an elderly man persuaded the man to issue a $10,000 check to recover a failed investment as part of a scam perpetrated on the maker of the check. The business associate (endorser) presented the check ...Under what circumstances would Chapter 11 be used rather than Chapter 7? Julaju drove a taxi on a part-time basis for El Pal- mar Taxi, Inc., usually only on Sundays and some- times on Mondays. He worked an unrelated job on the remaining days of the week. Julaju was given certain rules to ...Explain why a cooperative could not claim to be a syndicate. After the dissolution of a partnership formed to develop the Four Seasons Resort, TSA International Limited brought an action against Shimizu Corporation alleging breach of fiduciary duty. TSA had approached Shimizu in 1986 ...
Post your question