In the morning of November 1st, Maggie Grimes wrote a check for $1,000.00 payable to “cash.” She put it in her purse, and drove over to the supermarket to do some groceries, after the supermarket she planned on going to the bank to cash the check. While at the supermarket Maggie’s cellphone rings, she looks inside her purse, takes out her cellphone, while she is taking it out, and unbeknownst to her, the check she wrote earlier fell out of her purse. Maggie continues doing groceries without realizing anything about the check. Glenn, who was also doing groceries, walks through the aisle that Maggie was just in, sees the check on the floor, and puts it in his pocket. Glenn owes Carol $1,000.00, so he decides he is going to use the check he has to pay off his debt to Carol. Glenn gives the check to Carol, Carol endorses the check on the back as follows: For deposit only, [Signed] Carol Judith, and deposits it into her bank account. You must focus on the following issues:
Is the check a bearer instrument or an order instrument? Did Glenn’s delivery of the check to Carol constitute a valid negotiation? Why or why not? What type of instrument did Carol make after endorsing the check? Is Carol or Glenn a bona fide purchaser in this case? What legal significance does this would have? If Maggie sues Carol and Glenn, does Maggie have the right to recover the $1,000.00 from Carol and/or from Glenn? Explain all theories on which Maggie could recover from Carol and/or Glenn as well as Carol and/or Glenn’s potential defenses against Maggie.