Katys catering co places an order with sharpes supply house


Katy's Catering Co. places an order with Sharpe's Supply House for 100 white linen table clothes. A week later, Sharpe's delivers the order to Kathy's in ten boxes. Katy opens up a few boxes, determines that they contain white linen tablecloths, and hands over a check for $1,000 to Sharpe's deliveryman. Sharpe's Supply then properly negotiates Katy's check to its wholesaler, Harper Linens, as payment on Sharpe's account. The next day, Katy opens up the reamining boxes and discovers that about a third of the order is messed up. Some of the tablecloths are blue instead of white; some are polyester instead of linen. She immediately calls her back and places a stop-payment order on the check. The next day, Harper's deposited Katy's check for payment, but of course payment was refused because of the stop-payment order. Harper's then files a lawsuit against Katy's Catering seeking to collect on the check

Will Harper's prevail in its lawsuit against Katy's?

Why or why not?

Be sure to describe & define Harper Linen's legal status

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Financial Accounting: Katys catering co places an order with sharpes supply house
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