Kris Transfers a Note, on Which Liu Is the Maker

question 2

Multiple Choice

Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is​

• A) ​a knowledgeable holder in due course.
• B) ​an ordinary holder.
• C) ​an ordinary holder in due course.
• D) ​an ordinary note taker.

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Definitions:

Gaseous System

A collection of gas particles within a defined space, where the particles move freely and interact, applicable in studies of thermodynamics and physical chemistry.

Kinetic Energy

The energy possessed by an object due to its motion, directly proportional to the mass of the object and the square of its velocity.

Lower Explosive Limit

The minimum concentration of a vapor in air below which propagation of flame does not occur on contact with a source of ignition.

Lower Explosion Level (LEL)

The lowest concentration of a gas or vapor in the air that will ignite and produce a flame.