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:

Delusion

A strongly held belief that is contradicted by reality or rational argument, typically a symptom of a mental disorder.

Low Birth Weight

A term for newborns weighing less than 2,500 grams (5 pounds, 8 ounces) at birth, often associated with developmental or health issues.

Schizophrenia

Schizophrenia is a chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by delusions, hallucinations, disordered thinking, and emotional flatness.

Catatonia

A neuropsychiatric behavioral syndrome marked by an inability to move normally, which can include motor immobility, excessive motor activity, and extreme resistance to suggestion.