Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 26

You have learned about the benefits the law gives to a holder in due course in order to promote business transactions. Such a holder is given immunity against many potential defenses. Consider the ethical implications of this. Is it ethical that the obligee on a negotiable instrument is unable to raise otherwise valid defenses simply because the holder meets the requirements of being a holder in due course?