A Draft Is Payable "To the Order of Joe Jones

question 41

Multiple Choice

A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment. Should the drawer pay Sally?

• A) No, unless Joe Jones's name is crossed off.
• B) No, unless "bearer" is handwritten.
• C) Yes, since the word "or" is contained in the instrument, either Joe Jones or the bearer of the draft may obtain payment.
• D) No, the terminology is ambiguous and therefore the draft must be paid only to the order of Joe Jones.

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Definitions:

Nucleolus

A small dense region within the nucleus of a cell, involved in the production and assembly of ribosomes.

Nuclear Envelope

The double membrane structure that encloses the nucleus of a eukaryotic cell, separating its contents from the cytoplasm.

Prophase

The first stage of cell division in both mitosis and meiosis where chromosomes become visible and the nuclear envelope begins to break down.

Telophase

The final stage of cell division, where the chromatids or chromosomes move to opposite ends of the cell and two nuclei are formed.