The evening news was full of stories about how Levine sold fraudulent negotiable instruments to investors around the country. Two days later, Brighty, who did not hear the news reports, bought some of the fraudulent negotiable instruments from a swindled investor. Can Brighty claim the position of a holder in due course considering the publicity of the scam?
A. Brighty is presumed to have knowledge of the scam and therefore did not purchase the instruments in good faith.
B. Although Brighty passes the subjective test of good faith, he fails the objective test and therefore cannot claim to have purchased the instruments in good faith.
C. Brighty can claim to have purchased the instruments in good faith if he subjectively believed the instruments were valid and if objectively his purchase of the instruments was commercially reasonable.
D. Brighty cannot be a holder in due course because once an action of fraud is discovered, no additional claims against that party can be sought.
Answer: C
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The cost of goods manufactured of a company is $850,000. The beginning and ending finished goods inventory are $360,000 and 250,000, respectively. Determine the cost of goods sold
A) $960,000 B) $740,000 C) $610,000 D) $600,000
A company originally issues 180,000 shares of stock at a price of $22; one year later the stock price is $40 per share, the number of outstanding shares is unchanged, and the company's net income for the year is $230,400. The P/E ratio at the end of the recent year is:
A. 31.25. B. 24.22. C. 0.0002. D. 0.0001.
Compare the following statements and select the one that is accurate regarding a profit maximization strategy.
A. Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time. B. A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer. C. For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors. D. Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes. E. A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle.
Carl wanted the advantage that comes with the collective wisdom of a management team participating in a decision. Carl's division had to decide if solar panel, wind turbine blade, or battery power research would be its next major investment. He brought together his managers in a meeting; however, Shinichi, used his strength of character and oratory skills to push for solar panel research. Unfortunately, the other managers were quiet, and Shinichi managed to overpower them with his views. Given the dynamics of the meeting and its outcome, ________ had prevented Carl's meeting from achieving what he had hoped it would.
A. groupthink B. domination C. goal displacement D. devil's advocacy E. satisficing