Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 13

Case Problem with Sample Answer Michael Scotto borrowed $2,970 from Cindy Vinueza. Both of their signatures appeared at the bottom of an instrument that stated in its entirety, "I, Michael Scotto, owe Cindy Vinueza $2,970 (two thousand and nine-hundred seventy dollars) agree to pay her back in full. Signed on this 26th day of September 2009." More than a year later, Vinueza filed a suit in a New York state court against Scotto to recover $3,600, offering as evidence only this instrument. Scotto admitted that he had borrowed the funds, but he contended-without proof-that he had paid Vinueza in full. Is this instrument negotiable? If it is a negotiable instrument, which type is it? In the suit, which party is likely to prevail? Why? [ Vinueza v. Scotto, 30 Misc.3d 1229 (2011)]