Alpha Corp Appears to Be the Named Payee of a Cheque

question 25

Multiple Choice

Alpha Corp appears to be the named payee of a cheque drawn by Ultimate Inc. Ultimate, however, insists that that piece of paper cannot possibly be treated as a valid cheque under the Bills of Exchange Act. That is TRUE if

• A) Payment is to be made from an overdrawn account.
• B) The instrument had been materially altered after being drafted.
• C) The instrument is drawn on Lester, who is the major shareholder of Ultimate.
• D) The instrument is postdated.
• E) The instrument was certified before being delivered.

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Definitions:

Informational Constraint

Limitations or restrictions on the availability or flow of information.

Adequate Size

Refers to dimensions that are sufficient for a specific purpose or need.

Elements Of Argument

The basic components of logical reasoning, including claims, evidence, and reasoning, used to persuade or explain a position.

Claim

A statement made about something, often without evidence, that asserts it is true.