Kris Transfers a Note, on Which Liu Is the Maker

question 53

Multiple Choice

Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is

• A) a knowledgeable holder in due course.
• B) an ordinary holder.
• C) an ordinary holder in due course.
• D) a knowledgeable acceptor.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Scientific Research Approach

A systematic and methodological process of inquiry and investigation, aimed at discovering new knowledge or understanding phenomena in a structured and empirical way.

Collecting Data

The process of gathering and measuring information on variables of interest in an established systematic fashion, enabling one to answer stated research questions.

Gradual

Referring to something happening or changing by small degrees over time, often imperceptibly at first.