On January 10,2000,Jonathan writes a check,payable to Josh in the amount of $500.00,drawn on Jonathan's account with MBNA bank.Josh,on the back of the check,writes,"Pay to the order of Brandi" and leaves the check on his night stand.Brandi comes to visit while Josh isn't home (she has a key)sees the check and takes it believing that it was indorsed to her a repayment of a debt.Brandi,then signs her name to the back of the check and hands it to Lori as a birthday present.Which of the following is a false statement?
A) Josh has a personal defense against Brandi.
B) The shelter rule does not apply in the above situation.
C) Jonathan has no defenses against Josh.
D) Lori is not entitled to the check, because she gave no consideration for it.
E) Neither Josh nor Jonathan has a real defense against Lori.

Question

Quizplus · Accepted Answer

Lori is entitled to the check because she is a holder in due course.

On January 10,2000,Jonathan Writes a Check,payable to Josh in the Amount