Legal Question in Civil Rights Law in Massachusetts

Holder in due course?

Due to a computer store's fraud, the computer store writes Joe a $1000 check in return for the defective computer. Joe then negotiates the check to Phil, who qualifies as a holder in due course. Then Joe buys the check back from Phil. Has Joe thereby aquired the rights of a holder in due course? if so why?


Asked on 12/15/05, 2:53 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Holder in due course?

No. He has simply regained his original position. One cannot launder into a better position under the UCC, or do an "out/back" to gain an advantage not otherwise available. His status has not improved.

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Answered on 12/15/05, 3:20 pm


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