A Holder in Due Course

question 13

Multiple Choice

A holder in due course:

• A) inherits whatever claims and defenses arise out of the contract between the issuer and payee.
• B) has an automatic right to receive payment for a negotiable instrument unless the issuer can claim a valid defense.
• C) has a right of payment dependent upon the relationship between the issuer and payee.
• D) has a status that increases the value of an instrument but does not change the probability of being paid on the instrument.

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Definitions:

Comparative Performance Appraisal

An evaluation method where an individual's performance is directly compared to that of their peers to identify relative strengths and weaknesses.

Graphic Rating Scale

A method used in evaluations, consisting of a line or scale on which respondents indicate their opinions or performance levels.

Performance Outcomes

The results or achievements of an individual or organization's work, often measured against predefined goals or standards.

Forced Distribution

In performance appraisal forces a set percentage of persons into predetermined rating categories.