If students were asked to bring in checks, this would be the appropriate time to look at them. How much space is usually left on the lines?
a. Would it be easy or difficult to change the name of the payee on a check? Look specifically at this case, changing the payee from CMP Media to Sunjin Choi Choi.
b. If that is the case, why did Foster accept the check?
c. What have students learned about how to write checks?
d. Did Straith violate her presentment warranties when she deposited the check for $95,093.35?
e. Is Straith a holder?
f. Is the check a negotiable instrument?
g. Was the check validly negotiated?
h. So-has Straith violated her presentment warranties?
i. What is the impact of violating her presentment warranties?
MediaEdge wrote a check for $133,026 on its account at Wachovia, payable to CMP Media. Before CMP received the check, someone changed the name of the payee to Sunjin Choi Choi, and deposited the altered check into Choi's account at Foster Bancshares. Foster presented the check for payment to Wachovia; Wachovia paid Foster from MediaEdge's account. When MediaEdge learned that CMP never received the check is sued Wachovia for reimbursement. Wachovia then sued Foster.