Multiple Choice
Clint induces David,by fraud in the inducement,to make an instrument payable to the order of Clint.Clint then negotiates the instrument to Eric,a holder in due course,and later reacquires it from Eric.In this case:
A) Clint is a holder in due course.
B) Clint is not a holder in due course,but he succeeds to the rights of one,because of the shelter rule.
C) Clint does not succeed to Eric's rights as a holder in due course and remains subject to the defense of fraud.
D) because fraud in the inducement is a real defense,it can be used against both Clint and Eric.
Correct Answer:

Verified
Correct Answer:
Verified
Q76: Buying a negotiable instrument at a discounted
Q77: Bearer paper runs to whomever is in
Q78: Alexander Schwing indorses his check with his
Q79: The type of indorsement used in first
Q80: A negotiation obtained by duress,mistake,or fraud is
Q81: Under Article 3,the employer is allowed to
Q83: Ricardo is the holder of a check
Q84: What is the difference between time paper
Q85: The "value" requirement of a holder in
Q86: Which of the following is not a