Sprock Is a Holder in Due Course on an Instrument

question 2

Multiple Choice

Sprock is a holder in due course on an instrument issued by Klingon.Which of the following defenses could be successfully raised by Klingon?

• A)Forgery
• B)Prior payment
• C)Breach of contract
• D)Fraud in the inducement

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Definitions:

Lock Boxes

A cash management service offered by banks involving the collection of payments from a corporation's customers, aiming to reduce the time it takes for companies to receive payments.

Mail Float

The time between when a payment is mailed and when it is received and processed.

Warehousing

The process of storing goods in a large building until they are sold or distributed.

Source of Financing

The means through which funds are provided to businesses for operating capital or growth, including loans, investment, or earnings.