Steve Issues a Negotiable Promissory Note to Bob in Exchange

question 31

Multiple Choice

Steve issues a negotiable promissory note to Bob in exchange for Bob's promise to build an addition to Steve's home.The promissory note indicates this reason when Bob negotiates it to Willard for value.Can Willard be a holder in due course?

• A) Yes,unless he knows that Bob has not built the addition
• B) Yes,unless he did not give adequate value
• C) No,since he has taken the instrument with notice of a defense
• D) No,since he has violated the "good faith" requirement

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Definitions:

Easy Entry And Exit

Characteristics of a market where companies can freely enter or leave without significant barriers or costs.

Patented Prescription Drug

A medication that is protected by a patent, giving its manufacturer the exclusive right to produce and sell the drug for a certain period.

Lack Of Substitutes

A market condition where there are no close alternatives to a product, leading to higher consumer dependency on that product.

Monopoly

An industry controlled by a monopolist.