Roxanna Bought a Stereo from Sound Electronics

Multiple Choice

Roxanna bought a stereo from Sound Electronics.She paid the purchase price of $7500 by giving a promissory note to the store.The first time that Roxanna tried to operate the stereo outside of the store, it blew up due to a defect.She therefore refuses to honour the promissory note.Which of the following statements is TRUE?

A) Because the note was given to a company, Roxanna does not have a personal defence that she can use against Sound Electronics if it attempts to sue her on the note.
B) The provisions in the Bills of Exchange Act dealing with consumer bills and notes would not apply if Roxanna used a cheque to pay for the stereo.
C) Sound Electronics was required to mark the note as a "consumer note" if Roxanna intended to use the stereo for a business purpose.
D) The provisions in the Bills of Exchange Act dealing with consumer bills and notes might apply if Roxanna paid with a cheque that was postdated for 15 days.
E) Even if the promissory note was used for a consumer purchase, it may not be subject to the equities if Sound Electronics negotiated it to a holder in due course without notice that it was used for a consumer purchase.