Chris convinces Dion,who does not understand English,to sign a $1,000 note that Dion believes is an application for a credit card.Chris negotiates the note to EZ Finance Company.Dion
A)can avoid payment on the note even if EZ is an HDC.
B)can avoid payment on the note only if EZ is a holder.
C)must pay EZ the amount that it paid for the note.
D)must pay the note in full.

Question

Quizplus · Accepted Answer

Dion can avoid payment on the note even if EZ is a holder in due course (HDC) because Dion was misled into signing the note without understanding its true nature, which constitutes fraud in the execution.

Chris Convinces Dion,who Does Not Understand English,to Sign a $1,000