The ________ is a doctrine that says a holder who does not qualify as a holder in due course in his or her own right becomes a holder in due course if he or she acquires an instrument through a holder in due course.
A) exclusionary rule
B) acceleration clause
C) shelter principle
D) good faith principle

Question

Quizplus · Accepted Answer

The shelter principle is a legal principle in commercial law that allows a person who did not originally qualify as a holder in due course to acquire this status by receiving the negotiable instrument from a holder in due course. Essentially, the holder "takes shelter" under the rights and protections afforded to the original holder in due course. The other choices are not relevant to this concept.

The ________ Is a Doctrine That Says a Holder Who