A Person Can Become a Holder in Due Course of an Instrument

question 31

Multiple Choice

A person can become a holder in due course of an instrument that has been altered:

• A) in all circumstances
• B) in all circumstances so long as the person did not know of the alteration
• C) only if the alteration could not reasonably be detected
• D) only if the alteration was not done by the person's immediate transferor
• E) under no circumstances

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Definitions:

Representative Capacity

Acting on behalf of someone else or a group in a legal or official matter.

Poisonous Lead Paint

A type of paint containing lead compounds that are toxic and hazardous to health, especially harmful to children's neurological development.

Independent Contractor

An individual or entity contracted to perform work for—or provide services to—another entity as a non-employee.

Tort Liability

Legal responsibility arising from a civil wrong or injury to others that does not arise from a breach of contract or other agreement.