Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 3

Chloe buys a motorcycle on eBay from Junior. In payment, she gives him a promissory note for $7,000. He immediately negotiates the note to Terry. After the motorcycle arrives, Chloe discovers that it is not as advertised. One week later, she notifies Junior. She still has to pay Terry because:
(a) On eBay, the rule is "buyer beware."
(b) Terry's rights are not affected by Junior's misdeeds.
(c) Terry indorsed the note.
(d) Chloe is the drawee.
(e) Chloe waited too long to complain.