Question 1

A lack of good faith will be imputed to a party when she is negligent in discovering something is wrong with the instrument.

Accepted Answer

A) True 
 B)False

Question 2

According to the FTC's ________,holders in due course who possess consumer credit contracts are subject to all claims and defenses that the buyer could use against the seller.

Accepted Answer

A) shelter provision 
B) holder in due course rule 
C) lack of consideration rule 
D) universal defense rule 
A) shelter provision 
B) holder in due course rule 
C) lack of consideration rule 
D) universal defense rule

Question 3

A defense that may not be used against a holder in due course of a negotiable instrument is a:

Accepted Answer

A) limited defense. 
B) personal defense. 
C) real defense. 
D) secondary defense. 
A) limited defense. 
B) personal defense. 
C) real defense. 
D) secondary defense.

Question 4

In exchange for some illegal drugs,Popka wrote a $500 check to White.Immediately thereafter,Popka stopped payment on the check.Can White recover the $500 from Popka in court? Explain.

Accepted Answer

An instrument that i

Question 5

A demand negotiable note for $500 issued by Sabin and given to Norm is altered to read $5,000 and subsequently presented for payment by Bridget,a holder in due course.Discuss the case.

Accepted Answer

Sabin must pay only the amount for which

Question 6

A holder in due course of a negotiable instrument always has more rights than previous holders of the instrument.

Accepted Answer

A) True 
 B)False

Question 7

A check given in Colorado (where gambling is illegal)to pay a gambling debt in Nevada (where gambling is legal)provides a real defense to payment,even against a holder in due course.

Accepted Answer

A) True 
 B)False

Question 8

Personal defenses are defenses that can be used against:

Accepted Answer

A) natural persons,but not corporations. 
B) a holder in due course of a negotiable instrument,but not a holder. 
C) a holder,but not a holder in due course of a negotiable instrument. 
D) any party with whom the holder in due course has dealt with. 
A) natural persons,but not corporations. 
B) a holder in due course of a negotiable instrument,but not a holder. 
C) a holder,but not a holder in due course of a negotiable instrument. 
D) any party with whom the holder in due course has dealt with.

Question 9

Regardless of circumstances,an acceptor of a draft is obligated to pay an instrument without reservations.

Accepted Answer

A) True 
 B)False

Question 10

Sarah received a negotiable instrument as a birthday present and is now a holder in due course of the instrument.

Accepted Answer

A) True 
 B)False

Question 11

A holder in due course of a negotiable instrument:

Accepted Answer

A) can receive more rights than the previous holders. 
B) cannot transfer greater rights than they have themselves. 
C) can take an instrument even when it is not indorsed to him or her. 
D) is a person to whom the instrument is transferred as a gift. 
A) can receive more rights than the previous holders. 
B) cannot transfer greater rights than they have themselves. 
C) can take an instrument even when it is not indorsed to him or her. 
D) is a person to whom the instrument is transferred as a gift.

Exam 17: Holders in Due Course,defenses,and Liabilities

A lack of good faith will be imputed to a party when she is negligent in discovering something is wrong with the instrument.

According to the FTC's ________,holders in due course who possess consumer credit contracts are subject to all claims and defenses that the buyer could use against the seller.

A defense that may not be used against a holder in due course of a negotiable instrument is a:

In exchange for some illegal drugs,Popka wrote a $500 check to White.Immediately thereafter,Popka stopped payment on the check.Can White recover the $500 from Popka in court? Explain.

A demand negotiable note for $500 issued by Sabin and given to Norm is altered to read $5,000 and subsequently presented for payment by Bridget,a holder in due course.Discuss the case.

A holder in due course of a negotiable instrument always has more rights than previous holders of the instrument.

A check given in Colorado (where gambling is illegal)to pay a gambling debt in Nevada (where gambling is legal)provides a real defense to payment,even against a holder in due course.

Personal defenses are defenses that can be used against:

Regardless of circumstances,an acceptor of a draft is obligated to pay an instrument without reservations.

Sarah received a negotiable instrument as a birthday present and is now a holder in due course of the instrument.

A holder in due course of a negotiable instrument:

Ethics,social Responsibility,and the Law

Sources of the Law

The Judicial Process and Cyber-Procedure

Alternative Dispute Resolution and Cyber-Adr

Criminal Law and Cybercrimes

Tort Law and Cybertorts

The Essentials of Contract Law

Offer,acceptance,and Mutual Assent

Consideration and Cyber-Payments

Capacity and Legality: the Final Elements

Written Contracts and Cyber-Commerce

Third Parties,discharge,and Remedies

Sales Contracts: Formation,title,and Risk of Loss

Sales Contracts: Rights,duties,breach,and Warranties

Product Liability and Consumer Protection

The Nature of Negotiable Instruments

Bank-Depositor Relationships and Cyber-Banking

Insurance

Mortgages, land Contracts, and the 21st-Century Financial Crisis

Bankruptcy Law: in Theory, in History, and in Practice

Agency Law

Employment Law

Labor Law

The Business Entity: an Introduction

The Corporate Entity

Managing the Corporate Entity

Government Regulation of the Corporate Entity

Personal Property and Bailments

Real Property and Landlord and Tenant Law

Wills, advanced Directives, and Trusts

Professional Liability

Science, technology, and Law in the 21st Century

International Law and the New World Order

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