Check #1
Charlie Brown bought a collectible football signed by all the members of his favorite NFL team. The ball was jointly owned by sister and brother Lucy and Linus Van Pelt. Both Lucy and Linus agreed to sell the ball. On the day that Charlie went to the Van Pelt house to pick up the ball, Lucy was out at a therapy appointment. Charlie gave Linus the check and took the football home. Linus deposited the check on his way to baseball practice. When Lucy found out that Linus had deposited the check, she was furious. Linus was willing to give Lucy half of the payment but Lucy claimed that she owned more than 50% of the football because she likes football more than Linus. If Lucy goes to the bank and demands that the bank credit her with the amount deposited, will she be successful? Why or why not? Explain your answer by including references to the requirements for a negotiable instrument.
Check #2
Lisa signed up to take Business Law, Introduction to Business, and Microeconomics, and paid her tuition by check. When she took the check to cashiering, the cashier would not accept the check. What is the reason for the cashier’s reaction? Refer to the requirements of negotiable instruments in your explanation.
Check #3
Doughnut Holschtein always buys his weekly groceries at Harris Teeter because the grocery store chain holds itself out as providing good customer service. This week, Doughnut tried to pay by check but the cashier would not accept it. Doughnut was outraged and complained to the manager. The manager also would not accept the check. Doughnut vowed to take his business elsewhere.
Explain whether Harris Teeter had a basis for refusing to accept this check. Refer to the requirements of negotiable instruments in your explain