Cecilia Made a Check Out to Gideon for $15

question 7

Multiple Choice

Cecilia made a check out to Gideon for $15.Gideon fraudulently changed the check to read $150,and cashed it at Corner Bank.Is Cecilia discharged from liability on the check?

• A)Yes, Cecilia owes nothing on the check because alteration of a check is a real defense and real defenses are good even against holders in due course.
• B)No, Cecilia pays $150 because of the impostor rule.
• C)No, Cecilia pays $150 because she in not an indorser or accommodation party.
• D)Yes, Cecilia owes nothing unless Corner Bank is a holder in due course in which case she owes the original $15.

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Definitions:

Potholes

Circular holes in the bedrock of a riverbed or a roadway, formed by the abrasion of small stones and sediment whirled around by water.

Swirl

The movement of a fluid in a twisted or spiraling pattern, often occurring in natural systems like air currents and water bodies or in engineered applications.

Sediments

Particles of rock, minerals, or organic matter that have been transported and deposited by wind, water, or ice.

Suspended Load

Fine particles, generally clay and silt, that are carried suspended in moving water.