Carol signs a 30-day note payable to Chrome Appliances for $500 and gives it to Chrome as payment for a stereo set.When Chrome asks Carol for payment,she refuses to pay because the stereo does not work properly.Chrome then negotiates the note to a bank informing it of Carol's refusal to pay.Under this scenario,which of the following statements is true?
A) The bank is not a holder in due course of the note.
B) The bank is a holder in due course of the note.
C) Dishonoured instruments always make the indorser the holder.
D) Chrome is the holder in due course.
Correct Answer:
Verified
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A)changes the negotiable nature of
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Q36: Which of the following statements is true
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Q39: An indorsement that specifies the purpose of
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