Perfect Roofing Company receives a check from Quik Mart for fixing its roof, and indorses the check to Repair Supplies, Inc. (RSI) for materials previously supplied. Sam, RSI's owner, gives the check to Todd as a gift. In this situation, the party who is not an HDC of the check but who acquires HDC rights under the shelter principle is: a. Quik Mart. b. Perfect Roofing. c. Sam. d. Todd.

d.Todd

Explanation:

In commercial law, a holder in due course (HDC) is the person or entity that has the legal right to collect payment. In this case, Todd wasn't even involved in the original transaction and might have never even heard of Perfect Roofing or Quick Mart, but he received a valid instrument as a gift from Sam. Under the shelter principle, the fact that Todd received the instrument from Sam in a legal way, qualifies him as an HDC.

answer; i believe that the correct answer is (strain);