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Advanced Business Law and the Legal Environment, v. 1.0

by Don Mayer, Daniel M. Warner, George J. Siedel, and Jethro K. Lieberman

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Chapter 15 Holder in Due Course and Defenses

Learning Objectives

After reading this chapter, you should understand the following:

  1. What a holder in due course is, and why that status is critical to commercial paper
  2. What defenses are good against a holder in due course
  3. How the holder-in-due-course doctrine is modified in consumer transactions

In this chapter, we consider the final two questions that are raised in determining whether a holder can collect:

  1. Is the holder a holder in due course?
  2. What defenses, if any, can be asserted against the holder in due course to prevent collection on the instrument?
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