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 presented with Ben's demand for payment, Diann, 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 purchased the promissory note outside of normal business hours, which may suggest that he did not acquire it in good faith. Additionally, the note was sold at a steep discount, which could indicate that Curt had doubts about its payment. These factors combined could lead Diann to successfully argue that Ben did not acquire the instrument in good faith.

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