Cecilia Made a Check Out to Gideon for $15

question 21

Multiple Choice

Cecilia made a check out to Gideon for $15.Gideon fraudulently changed the check to read $150,and cashed it at Corner Bank.Is Cecilia discharged from liability on the check?

• A)Yes,Cecilia owes nothing on the check because alteration of a check is a real defense and real defenses are good even against holders in due course.
• B)No,Cecilia pays $150 because of the impostor rule.
• C)No,Cecilia pays $150 because she is not an indorser or accommodation party.
• D)Yes,Cecilia owes nothing unless Corner Bank is a holder in due course,in which case she owes the original $15.

---

Definitions:

Positive Response

A favorable reaction or reply to a treatment, stimuli, or situation.

Elicit

To draw out or bring forth a response or answer through questioning or experimentation.

Tube Feedings

A medical procedure to provide nutrition to patients who cannot obtain nutrition by mouth, are unable to swallow safely, or need nutritional supplementation.

Arthritis

A term describing conditions causing inflammation of the joints, leading to pain, stiffness, and potentially decreased mobility.