At 1 A.M., in front of EZ Credit Corporation, which is closed, Frey buys a $500 promissory note for $50 from Greco. When presented with Frey's demand for payment, Diaz, the maker of the note, could successfully claim that Frey
A)acquired the note with notice that it was overdue.
B)did not acquire the instrument in good faith.
C)did not give value for the instrument.
D)none of the choices.

Question

Quizplus · Accepted Answer

Frey did not acquire the instrument in good faith because the circumstances (buying a $500 note for $50 at 1 A.M. in front of a closed business) suggest that Frey should have been aware of potential issues with the note.

At 1 AM, in Front of EZ Credit Corporation, Which Is Closed