Caleb Has Been Confused by Some of His Bodily Functions

question 103

Multiple Choice

Caleb has been confused by some of his bodily functions. Lately he has been constipated, feels immense abdominal pain, and then, when he least expects it, has uncontrollable diarrhea. Caleb has not changed his diet, sleeping patterns, or activities in any way. But when he spoke with his family doctor, he realized that these conditions only appear around Finals Week. The physician MOST likely said which of the following?

• A) This is a common reaction to a single traumatic event.
• B) These are psychological disturbances associated with burnout.
• C) These are genuine physical ailments caused partly by psychological factors.
• D) All of these interpretations are equally likely.

Identify the difference between transfer warranties and presentment warranties.

Be aware of the specific rules and rationale behind the impostor rule and fictitious payee rule.

Comprehend the effect of breaches of warranties and how they relate to liabilities and recoveries.

Understand the defenses available against claims of conversion and the criteria for being a holder in due course.