Reggie Bluiett worked at the Silver Slipper Gambling Hall and Saloon. She received her weekly paycheck made out to her from the Silver Slipper. She indorsed the check in blank and left it on her dresser at home; she planned to deposit the check later to her bank. Fred Watkins broke into Bluiett's house and stole her check. Watkins took the check to the local auto store, where he bought two tires at a cost of $71. He obtained the balance of the check in cash.
1. Could the auto store qualify as a holder in due course? Why or why not?
2. Would the auto store have any legal advantage if it were a holder in due course? Explain.
3. How could Ms. Bluiett have indorsed her check to avoid this problem?