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:

Inauthentic Events

Activities or occurrences that lack genuineness or relevance to the real-life experiences and needs of the participants.

One-shot Events

Occurrences or activities that happen only once, often used in the context of experiments, promotions, or educational workshops.

Recruit Volunteers

The process of finding and encouraging individuals to offer their time and skills for a cause or organization without financial compensation.

Positive Feedback

A response or information that reinforces a particular behavior or action, encouraging its repetition or enhancement.