At 1 A.M., in front of EZ Credit Corporation, which is closed, Frank buys a $500 promissory note for $50 from Greg. When presented with Frank's demand for payment, Diane, the maker of the note, could successfully claim that Frank

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According to the Uniform Commercial Code (UCC), a purchaser of a negotiable instrument must acquire it in good faith and for value in order to have rights to it. Here, Frank purchased the promissory note for a significantly lower price than its face value, indicating that he may have known that it was either overdue or in default. Therefore, Diane could successfully claim that Frank did not acquire the instrument in good faith.

At 1 AM, in Front of EZ Credit Corporation, Which Is Closed