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| Ball borrowed $10,000 from Link. Ball, unable to repay the debt on its due date, fraudulently induced Park to purchase a piece of worthless costume jewelry for $10,000. Ball had Park write a check for that amount naming Link as the payee. Ball gave the check to Link in satisfaction of the debt Ball owed Link. Unaware of Ball’s fraud, Link cashed the check. When Park discovered Ball’s fraud, Park demanded that Link repay the $10,000. Under the Negotiable Instruments Article of the UCC, will Link be required to repay Park? A. No, because Link is the payee of the check and had no obligation on the check once it is cashed. B. Yes, because Link, as the payee of the check, takes it subject to all claims. C. Yes, because Link is subject to Park’s defense of fraud in the inducement. D. No, because Link is a holder in due course of the check. |