Reference - Run Around

question 54

Multiple Choice

Reference - Run Around. Millie issues a note to Bob. Bob endorses the note and transfers it to Anne. Anne endorses the note and transfers it to Henry. In a timely fashion, Henry endorses the note and presents it to Millie for payment. When Henry presents the note to Millie, she asks him for reasonable identification. He did not have any identification with him and told her that she had no right to dishonor the instrument. Millie, however, refused to provide him the funds until he returned with proper identification. Nevertheless, when he returned with proper identification, Millie refused to pay the note, claiming that she lacked the funds with which to do so. Henry proceeded immediately to request that Anne pay the note, but she told him that he would have to get his money from Bob, who cannot be found. Which of the following is true regarding Henry's entitlement to payment from Millie?

• A) Henry is only entitled payment from Millie because Anne dishonored the payment.
• B) Henry is not entitled to payment from Millie unless Bob, in addition to Anne, dishonors the instrument.
• C) Henry is never entitled payment from Millie because he must seek recovery only from Anne.
• D) Henry is entitled to recover on the note from Millie.
• E) Henry is entitled to recover on the note from Millie only if both Anne and Bob have filed bankruptcy or cannot be found.

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with realities and to maintain self-image.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

Defense Mechanism

Psychological strategies employed by individuals, often unconsciously, to protect themselves from anxiety-producing thoughts, feelings, or situations.

Denial

A psychological strategy where an individual evades facing a personal issue or accepting the truth by rejecting the presence of the problem or reality.