The __________ rule provides that the transferee of an instrument acquires the same rights that the transferor had.
A) parol evidence
B) shelter
C) maker
D) holder

Question

Quizplus · Accepted Answer

The shelter rule states that the transferee of a negotiable instrument acquires the same rights as the transferor, essentially "taking shelter" in the transferor's rights. This means if the transferor had good title or rights to the instrument, those rights are passed on to the transferee.

The __________ Rule Provides That the Transferee of an Instrument