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.