In the Development of the Law of Negotiable Instruments, Which

question 38

Multiple Choice

In the development of the law of negotiable instruments, which of the following was not a step?

• A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee.
• B) Contractual rights became assignable to third parties.
• C) The law of assignments changed to permit assignees to obtain greater rights than their assignors.
• D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject.

---

Definitions:

Social Security Tax

A mandatory government tax taken from workers' earnings to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Medicare Tax

A federal tax deducted from an individual's wages to fund the Medicare program, which provides healthcare benefits to eligible elderly and disabled individuals.

Computer Programmer

A specialist who writes, tests, and maintains computer software or applications.

Employment Agency

A business that has lists of job openings and charges a fee to find jobs for people.