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:

Liberty Rights

The right to be left alone to pursue our legitimate interests.

Legitimate Interests

Interests that do not violate others’ similar and equal interests.

Ethical Subjectivist

One who believes that morality is nothing more than personal opinion or feelings.

Tolerant

Showing willingness to allow the existence of opinions or behavior that one does not necessarily agree with.