Elmore Purchases Goods from Grady, and Elmore Executes and Delivers

question 28

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:

Waiver of Due Process

The voluntary surrender of an individual’s legal rights to procedural protections in a legal or disciplinary process.

Total Work Days

The total number of days employees are scheduled to work within a specific period, often used to calculate productivity or allocate resources.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law which guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Economic Strike

A work stoppage by unionized workers to enforce demands regarding wages, benefits, or working conditions.