A Holder Cannot Qualify as a Holder in Due Course

Multiple Choice

A holder cannot qualify as a holder in due course if he or she has notice that the instrument contains an unauthorized signature or has been altered or that there is any adverse claim against or defense to its payment.This rule is commonly referred to as the ________ doctrine.

A) promissory estoppel
B) due diligence
C) blue light
D) red light
E) learned intermediary