Under Which of the Following Circumstances Does a Holder Taking

question 79

Multiple Choice

Under which of the following circumstances does a holder taking an instrument for value not become a holder in due course?

• A)If the holder purchases the instrument at a judicial sale or under legal process.
• B)If the holder takes the instrument for payment of a preceding claim.
• C)If the holder exchanges the instrument for an irrevocable obligation to a third party.
• D)If the holder performs the promise for which the instrument was issued.
• E)If the holder acquires a security interest or some other lien in the instrument.

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Definitions:

Ethical Decisions

Choices made based on moral principles and values, considering the impact on stakeholders and society.

Compassion

The emotional response to another's pain or suffering, involving an authentic desire to help.

Absolutism

A deontological theory (also called nonconsequentialism) that emphasizes duties or rules; what’s morally right applies to everyone.

Teleological Ethics

Ethics that are value based.