Billy,a Minor,buys a Car Form Ajax Auto Dealers,signing a $2,000

question 22

Multiple Choice

Billy,a minor,buys a car form Ajax Auto Dealers,signing a $2,000 negotiable installment note in payment.Ajax needs the cash,so it sells the note to Acme Finance Company,for its fair market value,indorsing the note in blank.The owner of Acme,who personally purchased the note,knew that Billy was a minor.Circumstances occur such that Acme can collect the note only if it is a holder in due course.Is Acme a holder in due course with respect to this note?

• A) yes, Acme is a holder in due course
• B) no, because the note was not properly negotiated to Acme
• C) no, because the note bore evidence of irregularity
• D) no, because Acme took the note with notice that there was a defense to its payment
• E) no, Acme is not a holder in due course because of some other reason

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Definitions:

Money Is a Veil

The concept that suggests money's primary role is to facilitate trade without influencing the economy's real variables like output, employment, and consumption.

Classical View

An economic theory that emphasizes the importance of free markets, competitive forces, and the self-regulating nature of economies, minimizing government intervention.

Economy

A system of production, distribution, and consumption of goods and services within a certain geographical area.

Aggregate Demand

The broad market demand for goods and services within an economy, fixed at a particular price level during a set time frame.