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RE: question 4
Q: Justice Story deprives state judicial opinions of the status of
"laws." What status does he give his general holder-in-due-course rule?
What is the source of that rule? Why does it have higher status than the
decisions of the New York state courts?
A: Justice Story gives the "holder in due course rule" an elevated
status that is so long and well established, that it is one of the
fundamental parts of the law. It would seem that the holder in due
course rule derives from the long established, and promulgated
commercial law that developed in response to growing transaction among
the states and internationally. The HDC rule has a higher status than
decisions of the New York state courts because J. Story contends that
unwritten laws of the State written by its highest court does not
constitute laws, but merely evidence what laws are and are not of
themselves laws. Commercial laws have the force of laws because of its
long-established and broad use in trade and transactions, while Sect. 34
has limited applicability to strictly local and state matters and not to
a more general function--which the principles of commercial law govern.