Yun Writes an Instrument That States It Is "Payable to Zho

question 5

Multiple Choice

Yun writes an instrument that states it is "payable to Zho Ltd." In fact, "Zho Ltd." does not exist. The instrument is

• A)negotiable.
• B)nonnegotiable, because it does not state that it is payable to order.
• C)nonnegotiable, because it is payable to a nonexistent organization.
• D)nonnegotiable, because it cannot be transferred by indorsement.

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Definitions:

Criminal Penalties

Sanctions or punishments imposed by a court upon individuals or entities found guilty of committing a crime.

Consumer Information

Details or data about products and services designed to assist individuals in making informed purchasing decisions.

False Pretenses

Instances where an individual deliberately and falsely represents facts to deceive others, often for personal gain.

Fair Credit Billing Act

A U.S. federal law designed to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors on credit accounts.