The Impostor Rule Regarding Negotiable Instruments

question 8

Multiple Choice

The impostor rule regarding negotiable instruments:

• A) is devised not to put the responsibility for determining the true identity of the payee on the drawee of a check.
• B) makes the payee's signature valid even though it is a forgery.
• C) does not force the maker to find the wrongdoer.
• D) lays the responsibility of determining the identity of payee on later holders of an instrument.

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Definitions:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Clayton Act

U.S. legislation enacted to amend antitrust laws, prohibiting certain practices that could lead to anti-competitive behaviors.

Robinson-Patman Act

A United States federal law aimed at protecting small businesses from predatory pricing practices by larger competitors and preventing price discrimination.

Discriminate in Prices

The practice of charging different prices to different consumers for the same product or service, based on various factors such as willingness to pay, location, or purchase volume.