In Which of the Following Situations Has Conversion NOT Occurred

question 42

Multiple Choice

In which of the following situations has conversion NOT occurred?

• A) When an instrument is paid on a forged indorsement.
• B) When a drawee to whom a draft is delivered for acceptance properly returns it upon request.
• C) When any person to whom an instrument is delivered for payment refuses on demand to pay or to return it.
• D) When a bank pays an instrument containing only one of two required indorsements.

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Definitions:

Full Cost

The total cost of producing a product or service, including all direct, indirect, fixed, and variable costs.

Price-Fixing Contracts

Agreements between competitors to set prices at a certain level, which is illegal in many jurisdictions because it undermines free market competition.

Competition

The rivalry among businesses to attract customers and achieve market dominance.

Quoting Prices

The action of providing a prospective customer with a price at which a seller agrees to sell goods or services.