I've played a well set up Kentucky KM140S $186 (A with ff holes 12 frets to body) (or $221 for the 150 all solid wood) and the Johnson MA120 "Richmond" $169(15 frets to body A with ff holes). If the guy takes to it, then he has a beater when he upgrades to a better instrument. These things all sound like mandolins... from the $45 ebay special to the $200K Loar. Some sound better than others but if it's set up and has good intonation (at least in first position) you can learn an awful lot on anything.
I would feel comfortable recommending either of those models listed above with a good set up and fresh D'Addario J74 strings, a good pick and a book with chords and some simple melodies. A case isn't that important nor is a strap at this point. A $10 guitar stand and a hacksaw blade to shorten the tube on it will be money better spent.
This guy can be up and running for a little over $250 from Janet Davis and you'll have a playable starting point. Be sure you tell your brother in laws wife to make sure it's set up with a low action and that it intonates well before and if it doesn't (you ought to check it out before you let her give it to him) she better be able to ship it back.
Jamie
There are two things to aim at in life: first, to get what you want; and, after that, to enjoy it. Only the wisest of mankind achieve the second. Logan Pearsall Smith, 1865 - 1946
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