Article 3 of the UCC sets a higher bar in its __________ by requiring that a negotiable instrument be taken for value by the holder for a promise that has already been performed.
A) value exchange rule
B) demand rule
C) equal opportunity rule
D) gift promise rule

Question

Quizplus · Accepted Answer

Article 3 of the UCC (Uniform Commercial Code) specifies the requirements for negotiable instruments, including the value exchange rule. This rule requires that for a negotiable instrument to be considered taken for value, the holder must have given something of value in exchange for it, typically in the form of a promise that has already been performed.

Article 3 of the UCC Sets a Higher Bar in Its