Elmore Purchases Goods from Grady, and Elmore Executes and Delivers

question 32

Multiple Choice

Elmore purchases goods from Grady, and Elmore executes and delivers a negotiable note to Grady for $1,200, payable to Grady's order in 30 days. Two weeks later, Grady negotiates the note to McDaniel. Which of the following is true?

• A) McDaniel is required to notify Elmore that he acquired the note.
• B) If the goods are defective, Elmore's defense will necessarily be available against McDaniel.
• C) Whether Elmore's defense is available against McDaniel will depend on whether McDaniel acquired the note in good faith and for value, had no knowledge of the defense, and took the note without reason to question its authenticity.
• D) McDaniel can acquire no greater rights than Grady had in the note.

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Definitions:

Labor Relations Strategy

A plan devised by organizations to manage interactions with employees and their representatives in a way that advances the company's objectives.

Collective Bargaining

Collective bargaining is the process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions, wages, and other aspects of workers' compensation and rights.

Labor Unions

Organizations formed by workers in various sectors to protect and advance their rights, wages, and working conditions through collective bargaining.