At 1A.m.,on the sidewalk in front of Ace Credit Corporation,which is closed,Ben buys a $500 promissory note for $50 from Curt.When pre-sented with Ben's demand for payment,Diann,the maker of the note,could successfully claim that Ben
A)acquired the note with notice that it was overdue.
B)did not acquire the instrument in good faith.
C)did not give value for the instrument.
D)none of the choices.

Question

Quizplus · Accepted Answer

Ben bought the promissory note for $50, which is significantly less than the face value of $500. This could indicate that Ben knew or should have known that there was some issue with the note, such as it being overdue or not supported by sufficient collateral. Therefore, he did not acquire the note in good faith, and Diann could successfully claim this as a defense against payment.

At 1AM,On the Sidewalk in Front of Ace Credit Corporation,which Is