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Greg Jones buys what was represented to be a new computer from Longview Electronics. Greg issues a check to Longview Electronics for $3500 drawn on...
Greg Jones buys what was represented to be a new computer from Longview Electronics. Greg issues a check to Longview Electronics for $3500 drawn on Grand Savings Bank. Greg is the drawer of the check. Longview Electronics negotiated Greg's check to Ellen's business, Circuit Box Hardware, in payment for hardware Longview Electronics had purchased from Ellen's business in order to recondition the computers that he sold. Ellen as the sole proprietor of Circuit Box Hardware had no knowledge of Greg Jones or if Greg had any personal defenses to liability to the check he wrote to Longview Electronics. Ellen was a holder that took the instrument for value, in good faith, and met the requirements of being a holder in due course.
