Any Person Who Can Trace His Title to an Instrument

question 39

Multiple Choice

Any person who can trace his title to an instrument back to a holder in due course receives rights similar to a holder in due course even if he cannot meet the requirements himself. This is known as the _____.

• A) shelter rule
• B) holder in due course rule
• C) Federal Trade Commission rule
• D) irregular paper law

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Definitions:

Joint Taxable Income

The total taxable income jointly reported by a married couple or partners filing a combined tax return.

Tax Owed

The total amount of tax liability that an individual or business is obligated to pay to a taxing authority.

Progressive Tax System

A tax that increases as income increases; the percentage or rate increases.

Income

The money received, especially on a regular basis, for work or through investments.