Asked by Sarah-Cate Parker on Jun 16, 2024
Verified
Which of the following was the result in Michael J. Kane, Jr. v. Grace Kroll, the case in the text in which the defendant issued a check to the plaintiff to cover the plaintiff's sale of cows to the defendant's son, but later stopped payment on the check because her son said he could not repay her?
A) The plaintiff was not allowed to recover because the stop payment order prevented the plaintiff from being a holder in due course.
B) The plaintiff was not allowed to recover because, although he was a holder in due course, the stop payment order negated his entitlement to payment.
C) The plaintiff was not allowed to recover because the defendant established a lack of consideration to her.
D) The plaintiff was allowed to recover on a contract theory although he was not a holder in due course.
E) The plaintiff was allowed to recover because he was a holder in due course.
Stop Payment Order
A stop payment order is a request made to a bank or financial institution to cancel a check or payment before it is processed or cashed.
Holder In Due Course
A party possessing a negotiable instrument, such as a check or promissory note, who has certain rights to payment and is protected against some defenses if the instrument was acquired in good faith.
- Grasp the concept of a holder in due course and the protections it affords.
- Comprehend the legal justifications available as defenses against assertions made by bona fide holders.
Verified Answer
Learning Objectives
- Grasp the concept of a holder in due course and the protections it affords.
- Comprehend the legal justifications available as defenses against assertions made by bona fide holders.
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