Which of the following is not true?
A) To have the full benefit of negotiability,negotiable instruments not only must meet the requirements of negotiability but also must be acquired by a holder in due course.
B) A transferee of a negotiable instrument can acquire rights no greater than those of the transferor.
C) A holder in due course takes a negotiable instrument free of most of the defenses to which an assignee would be subject.
D) The number of checks written each year has decreased in recent years.

Question

Quizplus · Accepted Answer

A holder in due course can indeed acquire rights greater than those of the transferor, which is a key feature distinguishing negotiable instruments from other forms of assignment. This principle allows the holder in due course to take the instrument free from many defenses that could be raised against the original payee.

Which of the Following Is Not True