At 1 A.m., on the sidewalk in front of Ace Credit Corporation, which is closed, Ben buys a $500 promissory note for $50 from Curt. When pre?sented with Ben's demand for payment, Diane, the maker of the note, could successfully claim that Ben
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

Ben bought the promissory note for a significantly lower price than its face value, which may indicate that he did not acquire the instrument in good faith. Additionally, the fact that he bought it at 1 a.m. on a sidewalk in front of a closed business may suggest that he was aware of some irregularity surrounding the transaction. Diane could therefore argue that Ben did not have a lawful claim to payment under the promissory note.

At 1 AM, on the Sidewalk in Front of Ace Credit Corporation