Which of the following is true regarding Sam's rights in relation to the check?
A) As a holder, Sam may demand payment from either Susie, Annie, or Mary.
B) As a holder in due course, Sam may demand payment from either Susie, Annie, or Mary.
C) As a holder, Sam may demand payment from either Susie or Annie, but not Mary.
D) As a holder in due course, Sam may demand payment from either Susie or Annie, but not Mary.
E) Sam may not demand payment from either Susie, Annie, or Mary.

Question

Quizplus · Accepted Answer

A party who receives a negotiable instrument as a gift or through mistake will be a holder instead of an HDC. A certain type of holder, called a holder in due course (HDC) has more extensive legal rights, including freedom from competing claims and defenses. Sam does not qualify as a holder in due course.

Which of the Following Is True Regarding Sam's Rights in Relation