Question

In the case Las Vegas Sands v. Nehme, reported on page 380 of your textbook, the casino's "marker" was found by the court to be a negotiable instrument. The Venetian (a hotel owned by Las Vegas Sands LLC) was then allowed to sued Nehme for not paying a negotiable instrument. In a 500 word paper discuss the required elements for a negotiable instrument. Is it feasible that the casino marker contained all of these elements? Explain whether or not you think that gambling casinos should be able to advance credit to gamblers. From what you know about how alcohol affects a person's capacity to contract, is the fact that most gamblers are also consuming alcohol a factor in your decision? Do you think people would not gamble as much if casinos did not offer "markers?"

Answer 1

ANSWER:

the term negotiable instrument means a written document which creates a right in favour of some person and which is freely transferable. In the words of Justice Willis , a negotiable instrument is "one the property in which is acquired by anyone who takes it bonafide and for value notwithstanding any defects of title in the person whom he took it." So the important elements of a negotiable instrument are :

1. The instrument should be freely transferable (by delivery or by delivery and endorsement ) by the custom of the trade .

2. The person who obtains it in good faith and for value should get it free from all defects and

3. The holder in due corse is entitled to sue on the instrument in his own name . He need not give any notice of transfer to the person liable for payment on the instrument.

So three basic elements are Negotiability , Title and Recovery.

One fourth element is also there . This element prescribes whether a negotiable instrument is payable to order or it is payable to bearer.

An instrument is payable to order if it is expressed to be so payable or if it is expressed to be payable to a particular person and does not contain certain words prohibiting transfer or indicatiiing an intention that it shall not be transferable.

A negotiable instrument is said to be payable to bearer if it is expressed to so payable . In case the instrument is originally payable to order but it is endorsed in bank , the instrument will become to the bearer.

Now let us examine the "Marker" .

A marker contains the following :

1. Name of the player

2. Name of the player's bank

3. Player's account number

4. Instruction "to pay to the order of" a certain Casino a certain amount in US dollars .

5. Signed by the player there by guaranteeing the casino that on presentation his bank account will have the sufficient funds to clear this marker.

So the marker has all the elements which makes it a negotiable instrument in the hands of the casion owners and they should be able to advance credit to gamblers.

Marker is a facility given to the gamblers so that they do not have to carry huge cash with them. It has become a custom of the trade and gamblers come prepared with the idea of playing with a marker and this decision is made before playing and consuming alcohal. A marker is therefore better as it allows the gamblers to plan and organizes themselves in advance at a time they have not consumed alcohal.Definately if markers are not given the gamblers will not gamble that much because it functions just like the credit card where the impact is not immediate .