The Case, State of Qatar V

question 34

Multiple Choice

The case, State of Qatar v. First American Bank of Virginia , held that:

• A) the phrase "for deposit only" is not an effective restrictive indorsement.
• B) depositary banks are not required to handle checks consistent with the restrictive indorsement.
• C) the phrase "for deposit only" effectively limits the depositary bank to handle the instrument in a manner consistent with the transaction.
• D) a stolen check which is indorsed in blank cannot be freely negotiated by the bearer.

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Definitions:

Recall

The cognitive process of retrieving information from memory, allowing for the conscious recollection of past experiences and knowledge.

Recognition

The cognitive process of identifying information that has been previously learned or experienced.

Primacy Effect

The tendency to remember items at the beginning of a list better than those in the middle or at the end.

Emotional Impact

The intense effect an event, experience, or information can have on a person’s feelings or emotions.