A Holder in Due Course

question 10

Multiple Choice

A holder in due course:

• A) has greater obligations to pay an instrument than a mere holder.
• B) must notify subsequent transferees of his holder in due course status.
• C) can obtain greater rights to payment of an instrument than a holder.
• D) can give greater rights to a transferee than he has as a holder in due course.
• E) has less rights to payment of an instrument than a holder.

---

Definitions:

Chain of Command

The hierarchy of authority in an organization that determines how instructions are passed down and accountability is enforced.

Formal Channels

Established pathways for communication within an organization, typically outlined in its hierarchy or organizational structure.

Grapevines

Informal communication channels within organizations where information, rumors, and gossip are spread unofficially among employees.

Incorrect Information

Data or facts that are wrong, misleading, or inaccurately presented.