Joanne had a paycheck for $74 made out to her.She indorsed it with her name and gave it to Larry, who in return agreed to paint her living room next Saturday.In this situation:
A)the check is not negotiable.
B)Larry is not a "holder."
C)Larry is not a "holder in due course."
D)Larry has given value for the check.

Question

Quizplus · Accepted Answer

Larry is not a "holder in due course" because he did not take the check for value, in good faith, and without notice of any claim or defense against it.

Joanne Had a Paycheck for $74 Made Out to Her