A Purchaser Cannot Be a Holder in Due Course If

question 79

True/False

A purchaser cannot be a holder in due course if an instrument is acquired either after demand or at an unreasonable length of time after its issue.

---

Definitions:

Minimum Contacts Test

A legal standard used to determine whether it is appropriate for a court in one jurisdiction to assert personal jurisdiction over a defendant from another jurisdiction.

Jurisdiction

Jurisdiction refers to the official power to make legal decisions and judgments, often within a specific geographical area or over certain types of legal cases.

Close Corporations

Close corporations are privately held businesses where all shareholders are typically involved in the day-to-day operations, and shares do not trade publicly.

Veils Are Pierced

A legal metaphor used when courts look beyond the protection usually afforded by the corporate entity structure to hold individuals (e.g., directors, shareholders) personally liable for corporate debts or actions.