In Which of the Following Situations Is the Obligor Not

question 32

Multiple Choice

In which of the following situations is the obligor not likely to be fully discharged from his or her liability on a negotiable instrument?

• A)Jerry wrote a check to Elaine.Elaine cashes the check later.
• B)Edward lends Monica $1,000 toward her college expenses.She gives Edward a promissory note for $1,000,which Edward accidentally tears up.
• C)On June 1,2002,Kim receives a draft from Kurt payable on July 1,2002.Kurt then pays her in cash and cancels the draft.
• D)John fraudulently increases the amount due on the check from Bruce.

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Definitions:

Research

The process whereby scientists observe events, look for patterns, and evaluate theories proposed to explain those patterns.

Third Variable Problem

The possibility that two variables may be correlated but do not exert a causal influence on one another; rather, both are caused by some additional variable.

Mutual Association

A relationship between two or more entities where both or all parties benefit or influence each other.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together. A positive correlation indicates that as one variable increases, so does the other.