A Taker of a Negotiable Instrument May Be Denied the Status

question 4

Multiple Choice

A taker of a negotiable instrument may be denied the status and protection of a holder in due course if:

• A) one party is a consumer.
• B) the close-connection doctrine applies.
• C) the instrument is bearer paper.
• D) the presentment is not made in a commercially reasonable manner.

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Definitions:

Extension

An allowance for additional time granted by the IRS to file tax returns beyond the original due date.

Charitable Contribution

A donation or gift to a qualified organization that is eligible for a tax deduction.

Adjusted Gross Income

An individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

FMV

Fair Market Value, which is the price that an asset would sell for on the open market between a willing buyer and a willing seller.