Shade asked Dow to give him a check for $100 in return for Shades delivery the next

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Shade asked Dow to give him a check for $100 in return for Shade’s delivery the next day of a television set. Dow gave the check, but Shade never delivered the television set. Does Dow have a defense if sued on the instrument
(a) By Shade;
(b) By Shade’s brother, to whom Shade gave the unindorsed check as a gift; and
(c) By a grocer to whom Shade’s brother gave the instrument for value in the ordinary course of business the next day? (The grocer took the check without knowledge of the defense and while acting in good faith.) Explain your answers.

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Andersons Business Law and the Legal Environment

ISBN: 978-0324786668

21st Edition

Authors: David p. twomey, Marianne moody Jennings

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