At 1A.M., on the sidewalk 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

Question

At 1A.M., on the sidewalk 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​

Quizplus · Accepted Answer

Frank bought the promissory note at 1A.M., outside of EZ Credit Corporation, which is closed. This suggests that the instrument was being sold under suspicious or unusual circumstances, indicating that Frank may not have acquired the note in good faith. Furthermore, the fact that he bought the note for only $50 when its face value was $500 suggests that he did not give value for the instrument. Therefore, Diane could successfully claim that Frank did not acquire the instrument in good faith.

At 1AM, on the Sidewalk in Front of EZ Credit Corporation