In a nonconsumer transaction, a holder in due course takes the instrument free from:
A) only personal claims.
B) all defenses of any party with whom he has not dealt, except for a limited number of defenses that are available against anyone, including a holder in due course.
C) the defense of incapacity, duress, or illegality that renders the obligation void.
D) no claims.

Question

Quizplus · Accepted Answer

A holder in due course in a nonconsumer transaction takes the instrument free from most defenses, except for "real" defenses such as forgery, fraud in the execution, material alteration, discharge in bankruptcy, minority of the signer, and certain others that are universally applicable.

In a Nonconsumer Transaction, a Holder in Due Course Takes