Arthur R. wrote:
(I don't take Property until next year, and I'm not sure that I ever will have a course covering notes.) Don't you need John even if you have the note; after all, how does the legal system know that the note wasn't forged by John (or someone else in the chain between Joe and you.)
As another side issue, suppose Joe doesn't recall endorsing it to John. (I know, Joe thought he endorsed it to John, and he has a record of receiving payment for endorsing it to John, but suppose that note in the tranche wasn't endorsed.) John isn't around to object, and you don't have a claim without John, so you have no reason to object.
You should be required to take the UCC courses -- Sales (art. 2), Negotiable Instruments and Bank Transactions (Art. 3 & 4), and Secured Transactions (Art. 9). If you are not required to take them, and Sales is often part of the first year contracts curriculum, MAKE YOURSELF TAKE THEM.
As to your questions about forgery, it's complex. Generally, see Art. 3, sections 3-401 and following. Forgery by a maker, forgery of a payee's signature and other forged endorsements are all covered. To simplify, the question is usually who is the most negligent -- the person who allowed the forgery to occur or the person who took up the note from the forger. For a fun case, see Perini Corp. v. First National Bank of Habersham County, Ga
, 553 F. 2d 398 (5th Cir. 1977) (Ala., Ga., and Fla. were still in the 5th Cir. in 1977). The question presented was who was the most negligent, Perini, who allowed blank checks and a check writing facsimile machine to be stolen or the Bank, which took the forged checks from a man wearing an obviously fake Foo Manchu mustache, bell bottoms, and Cuban heels.
There is a back story here about the Covette driving woman doctor and a shoot out involving .45 pistols, gut I have lost it. 100 Q to anyone who can find the cite or copy of the article.