Patti's Pizza Pub, Inc., purchased a used automobile for pizza deliveries from Commercial Auto, Inc. on...

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Patti's Pizza Pub, Inc., purchased a used automobile for pizza deliveries from Commercial Auto, Inc. on March 1, 2019. The purchase price was $11,000 but Commercial Auto Inc. offered free financing for 1 year. Patti's Pizza Pub, Inc. gave the following to Commercial Auto, Inc., in payment of the car: "Patti's Pizza Pub, Inc. does hereby promise to pay to the order of Commercial Auto, Inc. the sum of $11,000 on March 1, 2020, as payment in full for the automobile purchased from Commercial Auto, Inc. on March 1, 2019." The note was signed by Patti's Pizza Pub, Inc., by Pattie Prisel, President of Patti's Pizza Pub Inc. Patti's Pizza received the car and used it for several weeks, when it broke down and became inoperable. As part of the contract for the sale of the car Commercial Auto, Inc., had guaranteed the car for one year, but they refused to fix it. Meanwhile, Commercial Auto had sold the promissory note to Third Bank for &10,000, which represented the fair market value of the note as discounted for present value. Third Bank had purchased the note in the normal course of business, in good faith, and had no knowledge that the car was faulty or that Commercial Auto, Inc., had refused to live up to the terms of its guarantee of the vehicle. On March 1, 2020, Third Bank demanded payment from Patti's Pizza Pub, Inc., who refused to pay. Third Bank subsequently sued Patti's Pizza Pub, Inc. for payment of the $11,000 that was due on the note. What do you think - will Third Bank succeed in its claim against Patti's Pub? Explain why or why not. Patti's Pizza Pub, Inc., purchased a used automobile for pizza deliveries from Commercial Auto, Inc. on March 1, 2019. The purchase price was $11,000 but Commercial Auto Inc. offered free financing for 1 year. Patti's Pizza Pub, Inc. gave the following to Commercial Auto, Inc., in payment of the car: "Patti's Pizza Pub, Inc. does hereby promise to pay to the order of Commercial Auto, Inc. the sum of $11,000 on March 1, 2020, as payment in full for the automobile purchased from Commercial Auto, Inc. on March 1, 2019." The note was signed by Patti's Pizza Pub, Inc., by Pattie Prisel, President of Patti's Pizza Pub Inc. Patti's Pizza received the car and used it for several weeks, when it broke down and became inoperable. As part of the contract for the sale of the car Commercial Auto, Inc., had guaranteed the car for one year, but they refused to fix it. Meanwhile, Commercial Auto had sold the promissory note to Third Bank for &10,000, which represented the fair market value of the note as discounted for present value. Third Bank had purchased the note in the normal course of business, in good faith, and had no knowledge that the car was faulty or that Commercial Auto, Inc., had refused to live up to the terms of its guarantee of the vehicle. On March 1, 2020, Third Bank demanded payment from Patti's Pizza Pub, Inc., who refused to pay. Third Bank subsequently sued Patti's Pizza Pub, Inc. for payment of the $11,000 that was due on the note. What do you think - will Third Bank succeed in its claim against Patti's Pub? Explain why or why not.

Answer rating: 100% (QA)

Yes Third Bank will succeed in its claim against Pattis Pub Th... View the full answer