explain the best solution for each. Include comments related to any ethical issues that arise. You should locate at least one scholarly source from one case that has been decided or is currently pending to support your answer.
Scenario 1 – Holders and Holders in Due Course
Donell sold Kyle a golf cart for $3,500, maintaining to Kyle that the cart was in excellent condition. Kyle gave Donell a check for $3,500, which Donell endorsed and gave to Linda in exchange for a debt he owed her. When Kyle took his friends out for a ride, he discovered that the cart had been previously wrecked and needed to be painted, and required a new battery. Kyle stopped payment on the check, which had not yet been cashed.
Describe the status of Donell and Linda as holders or holders in due course.
Can Linda recover from Kyle as a holder in due course? Discuss
Scenario 2 – Electronic Funds Abuse
Vinh Truong held an account with Truist Bank in Nashville. Shannon Palmer, a woman with whom Truong was briefly involved in a romantic relationship, stole his debit card and used it for over a year (well beyond the length of their relationship) to make unauthorized purchases in excess of $15,000. When Truong learned what was happening, he closed his account. The bank refused to reimburse him more than $385.65, the amount of unauthorized transactions that occurred within sixty days of the transmittal of the bank statement that revealed the first unauthorized transaction.
If Truong files a lawsuit against the bank to recover the funds, which party will win? Explain the arguments for each party.
What penalties could Palmer face related to the use of the debit card?
