Jones Issued a Check to Smith in Return for Smith's

question 1

Multiple Choice

Jones issued a check to Smith in return for Smith's promise to do work. Smith never did the promised work, but offered to buy goods from Gomez by endorsing the check to Gomez. Gomez had had no prior dealings with Jones or Smith, but accepted the check in payment. Gomez:

• A) cannot be a holder in due course.
• B) is considered an assignee of Smith's rights.
• C) is a holder through a holder in due course.
• D) is a holder in due course.

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Definitions:

League of Nations

An intergovernmental organization founded in 1920 after the Paris Peace Conference that ended the First World War, aimed at maintaining world peace.

Collective Security

A system in which a group of nations agree to act together to defend any member country that is attacked, aiming to maintain international peace and security.

Irreconcilables

A group of U.S. senators who opposed the Treaty of Versailles and U.S. membership in the League of Nations after World War I, fearing it would limit national sovereignty.

Treaty of Versailles

The 1919 peace treaty that ended World War I, imposing punitive conditions on Germany and redrawing the map of Europe, significantly impacting future international relations.