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Tom Gave Celebrity Lynnetta Landau a Blank Sheet of Paper

Question 34

Multiple Choice

Tom gave celebrity Lynnetta Landau a blank sheet of paper and asked her to sign her autograph on it.Then,without Lynetta's knowledge,Tom wrote a promissory note made payable to him for $3,000 above her signature.This kind of fraud is known as fraud:


A) as to the essential nature of the transaction,which may not be used as a defense against a holder in due course.
B) as to the essential nature of the transaction,which may be used as a defense against a holder in due course.
C) in the inducement,which may not be used as a defense against a holder in due course.
D) in the inducement,which may be used as a defense against a holder in due course.

Correct Answer:

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