Question: Trudy received a check from Chad for a computer Chad purchased from Trudy who is not a merchant. Trudy knew the computer was defective and
Trudy received a check from Chad for a computer Chad purchased from Trudy who is not a merchant. Trudy knew the computer was defective and unusable. However, by the time Chad discovered this fact, Trudy had negotiated Chad=s check to Bill for a new patio Bill was building for Trudy was unaware that the computer Chad purchased was defective and unusable. Which of the following is correct?
A. Bill is not a holder in due course because he is not the payee
B. Truly a holder in due course
C. Bill is not a holder in due course chad has a claim against Trudy
D. Bill is a holder in due course of the check
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