Negative Externalities Are Costs Incurred By

question 200

Multiple Choice

Negative externalities are costs incurred by:
i.buyers
ii.sellers
iii.someone other than buyers or sellers

• A) (i) only
• B) (ii) only
• C) (iii) only
• D) both (i) and (ii)

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Definitions:

Fictitious Payee Rule

A legal principle stating that if a negotiable instrument is issued to a fictitious payee, it may be treated as payable to bearer, affecting endorsement requirements.

Imposter Rule

A rule that holds that if one obtains a negotiable instrument by impersonating another and endorses it with the impersonated party’s signature, the loss falls on the drawer of the instrument.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify transactions across state lines.

Proper Presentment

The correct or formal presentation of a document for acceptance or payment, such as a check.