Jill, in Good Faith and for Value, Gets from Kiley

question 48

Multiple Choice

Jill, in good faith and for value, gets from Kiley a negotiable bearer instrument. Jill does not know that Kiley stole the instrument. Jill is​

• A) an HDC.​
• B) ​not an HDC, because Kiley did not acquire the instrument for value.
• C) ​not an HDC, because Kiley did not acquire the instrument in good faith.
• D) ​not an HDC, because the instrument is a bearer instrument.

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Definitions:

Conditional Sales Contract

An agreement where the buyer takes possession of an item but its formal title and ownership remain with the seller until all terms of the contract are fulfilled.

Purchase Money Securities Interest

A legal claim that allows lenders to have a security interest in an item that was purchased with the funds they provided.

Security

Measures or mechanisms put in place to protect against theft, espionage, or other threats to safety and privacy.

Inventory

The total quantity of goods and materials that a business holds for the purpose of resale or production.