When an Instrument Fails to Meet the Technical Requirements Necessary

question 15

Multiple Choice

When an instrument fails to meet the technical requirements necessary to qualify as a negotiable instrument, which of the following statements is true?

• A) The instrument is still enforced as a negotiable instrument if it has been transferred to a holder in due course.
• B) The instrument is still enforced as a negotiable instrument if it has been accepted by a bank.
• C) The instrument is still enforced as a negotiable instrument if the holder can establish detrimental reliance based on a reasonable belief that the instrument qualified as a negotiable instrument.
• D) The instrument may qualify as an enforceable contract.
• E) The instrument is null and void and of no use to the holder.

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Definitions:

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Z Problem-solving Model

An approach to problem-solving that promotes collaboration among all stakeholders to find a solution that addresses the needs of all parties.

Sensing

The process of perceiving through the senses or a preference for dealing with concrete, tangible information.

Intuiting

The process of understanding or knowing something without the need for conscious reasoning or direct evidence.