ANSWERS-CH32 - However the thief will not become a holder...

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CHAPTER 32 NEGOTIATION AND HOLDER IN DUE COURSE ANSWERS TO CHAPTER 32 True-False Multiple Choice 1. T 2. F 3. T 4. F 5. F 6. T 7. T 8. F 9. F 10. T 11. T 12. T 13. b 14. c 15. a 16. d 17. d 18. d 19. b 20. b 21. c 22. d 23. a Short Essay 24. The three kinds of indorsements are special, blank, and restrictive. In addition, an indorsement may be “qualified.” 25. Probably not. The discount from the face value is so large that she either likely took the note in bad faith or had notice of a claim against the note. This large discount should have alerted her that something might be wrong with the note. Answers to Student Study Guide and Workbook Questions 54
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26. Bearer paper is negotiated by the mere transfer of physical possession, which means that a thief of bearer paper is a holder.
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Unformatted text preview: However, the thief will not become a holder in due course, for lack of good faith if for no other reason. Still, the thief might negotiate the instrument to someone who can qualify as a holder in due course. As before, the negotiation can occur through the transfer of physical possession. And it is possible that the transferee will take for value, in good faith, and without notice that the instrument is overdue, etc., etc. 27. Because they want to get the depositor's secondary liability as an indorser. Perhaps the drawee bank will not pay the check when it is sent there for payment. Answers to Student Study Guide and Workbook Questions 55...
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This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.

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ANSWERS-CH32 - However the thief will not become a holder...

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