Which of the Following Is False with Regard to a "Holder

question 60

Multiple Choice

Which of the following is false with regard to a "holder in due course"?

• A) A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud.
• B) A holder in due course is the same as the "drawee" or "acceptor."
• C) A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque.
• D) A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment.
• E) A holder in due course cannot be an immediate party.

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Definitions:

Cowan

A surname of likely British origin, but without a clear definition of its significance in a specific field without further context.

Dual-Coding Theory

A theory of cognition proposing that visual and verbal information are processed differently and along distinct channels in the human mind, enhancing learning.

Semantic Codes

In psychology and cognitive science, it refers to the process of encoding information into memory, focusing on the meaning of the information.

Structural Encoding

Structural encoding is the process of encoding information according to the structure of objects, focusing on the physical features rather than the meaning.