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.

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Definitions:

Assistance

The act of helping or providing aid to someone.

Behavior Modification

A therapeutic approach that seeks to change undesirable behaviors through the systematic use of reinforcement and punishment.

Problem Behaviors

Actions or behaviors that are socially unacceptable, disruptive, or harmful to oneself or others.

Social Learning

The acquisition of behaviors and knowledge through observation and imitation of others within a social context.