[Check Issues] Kelsey Owns and Operates a Currency Exchange

question 41

Multiple Choice

[Check Issues] Kelsey owns and operates a currency exchange. A regular customer, Rafe, comes in and cashes a $2,000 check issued by ABC Trucking. The day after Kelsey cashed the check, she received a notice from ABC Trucking that some checks had been stolen. It was later discovered that the checks she cashed for Rafe had been stolen. At the time she took the check, Kelsey was very busy with several customers in line. She simply glanced at the check and cashed it. A reasonable examination would have revealed that the check had been materially altered and changed from the amount of $200 to $2,000. Kelsey decided that she needed to hire some people to help her because she also had a problem with another check. On the same day that she took Rafe's check, she took a check from another customer, Brett. It was later discovered that the check, which was four months old, was the subject of a dispute between Brett and the issuer of the check for whom Brett had done some work. The issuer claimed that the work was improperly done. Both ABC Trucking and the issuer of the check to Brett had stopped payment on the checks. Kelsey claimed that as a holder in due course, she was entitled to payment on both checks.
-What is the effect of Kelsey receiving notice the day after she cashed the check for Rafe that the check had been stolen?

• A) The notice has no effect on her status as holder in due course because it was provided after she cashed the check.
• B) The notice prevents her from being a holder in due course.
• C) The notice prevents her from being a holder in due course only if Rafe had been convicted of check cashing offenses in the past since she should have checked his criminal record.
• D) The notice prevents her from being a holder in due course only if she subjectively knew that Rafe had been charged criminally with check cashing violations in the past.
• E) The notice prevents her from being a holder in due course because it was presented to a business; only individuals can avoid the effect of notice of theft by cashing a check prior to receiving notice.

Understand the stages of cognitive development according to Piaget, including their chronological order and defining characteristics.

Recognize the concept of assimilation and accommodation and their roles in cognitive development.

Identify factors influencing brain development and their implications for behavior and cognitive functions during different developmental stages.

Understand the preferential looking and habituation research methods and their findings on infant perceptual abilities.

---

Definitions:

Pacific Coastline

The western boundary of the United States and Canada facing the Pacific Ocean, known for its diverse ecosystems and scenic beauty.

Tsunamis

Large, often destructive sea waves caused by underwater earthquakes, volcanic eruptions, or landslides.

Correct Verb

The accurate or suitable use of a verb in a sentence, aligning with the subject in number and tense for grammatical consistency.

Careful Planning

The process of thoughtfully organizing tasks and resources in order to achieve a specific goal, emphasizing attention to detail and foresight.