Vicenzo, in good faith and for value, gets from Wren a check "payable to the order of bearer." Vicenzo does not know that Wren stole the check. Vicenzo is
A) an HDC.
B) not an HDC, because Wren did not acquire the check for value.
C) not an HDC, because Wren did not acquire the check in good faith.
D) not an HDC, because the check is a bearer instrument.

Question

Vicenzo, in good faith and for value, gets from Wren a check "payable to the order of bearer." Vicenzo does not know that Wren stole the check. Vicenzo is​
A) ​an HDC.
B) ​not an HDC, because Wren did not acquire the check for value.
C) ​not an HDC, because Wren did not acquire the check in good faith.
D) ​not an HDC, because the check is a bearer instrument.

Quizplus · Accepted Answer

Vicenzo is a holder in due course (HDC) because he took the check for value, in good faith, and without notice of any defect or claim to it. The fact that Wren stole the check does not affect Vicenzo's status as an HDC if he was unaware of the theft.

Vicenzo, in Good Faith and for Value, Gets from Wren