Reggie Bluiett worked at the Silver Slipper Gambling Hall andSaloon. She received her weekly paycheck made out to her from theSilver Slipper. She indorsed the check in blank and left it on herdresser at home; she planned to deposit the check later to herbank. Fred Watkins broke into Bluiett's house and stole her check.Watkins took the check to the local auto store, where he bought twotires at a cost of $71. He obtained the balance of the check incash.
1. Could the auto store qualify as a holder in duecourse? Why or why not?
2. Would the auto store have any legal advantage if it werea holder in due course? Explain.
3. How could Ms. Bluiett have indorsed her check to avoidthis problem?
