On July 1, Anderson sold D'Aveni, a jeweler, a necklace containing imitation gems, which Anderson fraudulently represented to be diamonds. In payment for the necklace, D'Aveni executed and delivered to Anderson her promissory note for $25,000 dated July 1 and payable on December 1 to Anderson's order with interest at 12 percent per annum.

The note was thereafter successively indorsed in blank and delivered by Anderson to Bylinski, by Bylinski to Conrad, and by Conrad to Shearson, who became a holder in due course on August 10. On November 1, D'Aveni discovered Anderson's fraud and immediately notified Anderson, Bylinski, Conrad, and Shearson that she would not pay the note when it became due.

Bylinski, a friend of Shearson, requested that Shearson release him from liability on the note, and Shearson, as a favor to Bylinski and for no other consideration, struck out Bylinski's indorsement. On November 15, Shearson, who was solvent and had no creditors, indorsed the note to the order of Frederick, his father, and delivered it to Frederick as a gift.

At the same time, Shearson told Frederick of D'Aveni's statement that D'Aveni would not pay the note when it became due. Frederick presented the note to D'Aveni for payment on December 1, but D'Aveni refused to pay. Thereafter, Frederick gave due notice of dishonor to Anderson, Bylinski, and Conrad. What are Frederick's rights, if any, against Anderson, Bylinski, Conrad, and D'Aveni on the note?