red lights ahead doctrine

red lights ahead doctrine
Under this doctrine, third party obtaining securities is required to investigate only under exceptional circumstances which arise when a party to a transaction has knowledge that some fact or facts exist with respect to transaction which would prevent action by commercially honest men for whom law is made. Thomes v. Atkins, D.C.Minn., 52 F.Supp. 405, 410

Black's law dictionary. . 1990.

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