Describe the status of Donell.

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

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