Rafe Signs a Check Payable to Shop Mart, Which Transfers

question 16

Multiple Choice

Rafe signs a check payable to Shop Mart, which transfers the note by negotiation to Trans-State Bank. With respect to any defenses to payment on the note that Rafe could have raised against Shop Mart, most likely Rafe can

• A)raise those defenses against the bank.
• B)no longer present any defense to payment.
• C)not assert those defenses against the bank.
• D)claim more defenses against the bank than Shop Mart.

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Definitions:

Legal Liability

The legal responsibility to compensate for harm or wrongdoing established under civil law, subjecting individuals or entities to legal consequences.

Manufacturers

Entities engaged in the production of goods from raw materials through the use of machines and labor.

Injuries Or Damages

Physical harm to a person or deterioration or loss to property, respectively, which may be subject to compensation through legal claims.

Good Samaritan Statutes

Laws designed to offer legal protection to people who give reasonable assistance to those who are, or whom they believe to be, injured, ill, in peril, or otherwise incapacitated.