Facts: The Venetian approved a credit line of $500,000 to Nehme. One day, while gambling at the Venetian, Nehme signed a casino marker for $500,000 payable to the Venetian. Nehme exchanged the marker for chips and lost all $500,000 worth of chips playing blackjack. Nehme then left the Venetian with the marker outstanding. The Venetian presented the $500,000 marker to Bank of America, the bank specified on the marker, but the marker was returned for insufficient funds. The Venetian sued Nehme for failure to pay a negotiable instrument.

Issue: Is the Venetian's casino marker signed by Nehme a negotiable instrument under the Nevada Uniform Commercial Code? If not, why not? If it is, why is it a Negotiable Instrument?

Assuming it is a Negotiable Instrument, even if you do not believe it is one, what arguments can the Venetian use to enforce the Negotiable Instrument?

Question

Jermaine Dyer

Business

22 November, 06:31

Facts: The Venetian approved a credit line of $500,000 to Nehme. One day, while gambling at the Venetian, Nehme signed a casino marker for $500,000 payable to the Venetian. Nehme exchanged the marker for chips and lost all $500,000 worth of chips playing blackjack. Nehme then left the Venetian with the marker outstanding. The Venetian presented the $500,000 marker to Bank of America, the bank specified on the marker, but the marker was returned for insufficient funds. The Venetian sued Nehme for failure to pay a negotiable instrument.

Issue: Is the Venetian's casino marker signed by Nehme a negotiable instrument under the Nevada Uniform Commercial Code? If not, why not? If it is, why is it a Negotiable Instrument?

Assuming it is a Negotiable Instrument, even if you do not believe it is one, what arguments can the Venetian use to enforce the Negotiable Instrument?

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Answers (1)

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April Kaiser · Answer 1

Is the Venetian's casino marker signed by Nehme a negotiable instrument under the Nevada Uniform Commercial Code?

Yes, this is a negotiable instrument because Nehme applied for it voluntarily and negotiated the terms with the Venetian casino. This is an actual case that occurred in 2011.

Casino markers have been deemed as valid negotiable instruments by the Nevada Supreme Court in Nguyen vs. State, 116 Nev. 1171, 14 P. 3d 515. 516 - 17 (2000).

Assuming it is a Negotiable Instrument, even if you do not believe it is one, what arguments can the Venetian use to enforce the Negotiable Instrument?

The negotiable instrument is a valid contract which grants the person or entity that possesses it the right to request performance by the other party. In this case, the marker is a type of IOU or promissory note.