According to the UCC, Which of the Following Is True

question 76

Multiple Choice

According to the UCC, which of the following is true regarding when a person has notice of a fact?

• A) Under the UCC a person has notice of a fact only when the person has actual knowledge of the fact.
• B) Under the UCC a person has notice of a fact under the following two circumstances: (1) when the person has actual knowledge of the fact, and (2) when the person receives notice or notification of the fact.
• C) Under the UCC a person has notice of a fact under the following three circumstances: (1) when the person has actual knowledge of the fact, (2) when the person receives notice or notification of the fact, and (3) when the person has reason to know the fact exists.
• D) Under the UCC a person has notice of a fact only when the person has signed a verification to the effect that notice was received.
• E) Under the UCC a person has notice of a fact only when the person receives written notification either through regular mail or electronic means.

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Definitions:

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.

Private Placement

The offering of securities to a relatively small number of select investors as a way of raising capital.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting costs, legal fees, and registration fees.

Oversubscription Option

A clause in an offering agreement that allows the issuer to sell more shares than originally planned if the demand exceeds expectations.