Jose receives a promissory note from his grandmother as a ...

[renzo156]

Jose receives a promissory note from his grandmother as a birthday present. Is Jose a holder in due course (HDC) with respect to the note?
 A) No, because the note was a gift
 B) No, because the note was signed by a relative
 C) Yes, because the note was a gift made in good faith
 D) Yes, because although the note was a gift, Jose took it without notice

Question 2

Martin Kiefaber sold his Arlington, Virginia, home on November 19, 2009. The buyers' real estate agent, Steven Thorman, who was affiliated with RE/MAX Allegiance, assisted the buyers in acquiring a home warranty in connection with that transaction. The buyers requested that Kiefaber cover the cost of the home warranty. Kiefaber agreed and bought a 399 policy from HMS National, Inc that covered the home's appliances for one year. After Kiefaber funded the warranty, HMS paid RE/MAX 60 in connection with Thorman's involvement in the transaction. Kiefaber alleges that the 60 payment to RE/MAX was an illegal kickback for a referral in violation of the Real Estate Settlement Procedures Act. Is he correct?

[Kimmy]

Answer to Question 1

A

Answer to Question 2

Court concluded as a matter of law, based on undisputed facts, that HMS paid the 60 fee for compensable services actually performed and that the fee was therefore not a prohibited referral fee. Kiefaber v. HMS Natl. Inc., 2012 WL 3192757 (E.D. Va. 2012).