Blane Indorsed His Paycheck in Blank and Cashed It at a Store

question 50

Multiple Choice

Blane indorsed his paycheck in blank and cashed it at a store where he was a well-known customer.The check was then stolen from the store.The store immediately notified Blane's employer,who gave the drawee bank a stop payment order.The thief indorsed the check in a false name and transferred the check to a gas station/convenience store,which took the check in good faith and for value.The check was dishonored when presented to the drawee bank.Which of the following statements is true?

• A) The thief was a holder within the Code definition and could negotiate the check.
• B) The thief could not negotiate the check because he forged the indorsement.
• C) The gas station/convenience store is entitled to nothing from the drawer of the check.
• D) The gas station/convenience store could not be a holder in due course because it took the check from a thief.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that consumers are willing to buy, without any leftover surplus or shortage.

Collusion

Collusion is an agreement among firms in a market to coordinate actions to achieve a higher price or market control, resulting in less competition.

Oligopolistic Producers

Companies within an industry where a small number of firms hold a large market share, leading to limited competition.

Homogeneous Product

Goods that are perfectly identical in quality, style, and substance, making them indistinguishable from products produced by competing companies.