Marty Sandidge Wrote a Check Payable to "Charles Saxon" When

question 62

Multiple Choice

Marty Sandidge wrote a check payable to "Charles Saxon" when the payee's real name was spelled "Charles Saxton." In order to obtain payment, Charles:

• A) must have Marty void the check and rewrite another check with Charles's name spelled correctly.
• B) may be required by a person taking the instrument for value to sign both "Charles Saxon" and the correct spelling of his name.
• C) must sign only his real name with the correct spelling or he will be liable for forgery.
• D) must sign only "Charles Saxon" since that was the name on check.

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Definitions:

Material Misstatements

Significant inaccuracies or omissions in financial statements that could influence the decision-making of users of those statements.

Section 11

A specific provision of a law or regulation, often requiring context (such as a specific act or statute) to define fully.

Privity of Contract

A legal principle stating that contracts are private agreements between the parties who have entered into them, and typically, only those parties have the right to enforce or challenge the contract in court.

Rule 505

Part of Regulation D of the SEC, which provided guidelines for limited offerings and sales of securities without full registration, though it is now superseded by changes in securities laws.