Question

1. Bearer Instruments.

FACTS: Gilbert Ramirez claimed that he had purchased a winning lottery ticket, the prize for which was approximately $1.5 million. Unfortunately, Ramirez had lost the ticket itself and therefore could not claim the prize. Even though the evidence indicated that he very likely was indeed the purchaser of the winning ticket, un­der the state lottery rules, he could not claim the prize unless he produced the winning ticket. In a legal action brought by Ramirez against the state lottery bureau, Ramirez claimed, among other things, that the lottery ticket was a negotiable instru­ment because on the back of each lottery ticket were the following words: “THIS TICKET IS A BEARER INSTRUMENT SO TREAT IT AS IF IT WERE CASH.” Because the owner of a lost nego­tiable instrument can collect on the instrument if certain require­ments are met—such as establishing proof of ownership, the terms of the instrument, and so on—Ramirez ar­gued that he should be allowed to claim the prize if he could meet these requirements.

ISSUE: Discuss fully whether Ramirez will succeed in his claim that the lottery ticket was a ne­gotiableinstrument.

RULE/RESOLUTION: [Ramirez v. Bureau of State Lottery, 186 Mich.App. 275, 463 N.W.2d 245 (1990)] How did the court answer the questions? What did the court decide?

EXPLANATION/APPLICATION-Do you agree with the court? Why or why not? Can you change any facts to give a different result?

Answer 1

ISSUE

Ramirez is not going to make it out as the lottery ticket which is being claimed was negotiable because lottery tickets are not negotiable; as there was no signature if an endorser. This means there is no note of promise which states that a certain amount will be paid and is not even payable.

RULE

Ramirez’s claim was rejected by the court, by stating that the ticket is not similar to other instruments which provide a proof of a hidden duty, which is not even going to change or get faulty; lottery ticket only provide with money which is being owned.

EXPLANATION/APPLICATION

Yes, I agree with the court because the rules which are being set for lottery tickets are common for all. Facts can’t be changed for the lottery instrument as they are meant to be same for all.