Which of the Following Is True Regarding Martha's Liability to Henry

question 42

Multiple Choice

Which of the following is true regarding Martha's liability to Henry?

• A) Because of the fraudulent alteration, Martha is not liable to Henry for any amounts under the promissory note.
• B) Martha's obligation will be enforced only to the amount of $4,000 if payment is to be made to Henry; but if the note has been negotiated to another holder, Martha is liable for $4,500.
• C) Taylor's obligation will be enforced only to the amount of $3,000 if payment is to be made to Henry; but in the event the note is negotiated to a holder in due course, Taylor is liable for $3,500.
• D) Unless Martha has a written document from Henry to the effect that the agreement was for $4,000 only, Martha and Henry will be legally required to split the remainder with Martha being held responsible for $4,250.
• E) Martha is liable for $4,000 regardless of whether or not Henry has negotiated the note to another party.

---

Definitions:

Code of Conduct

A set of rules outlining the norms, rules, and responsibilities or proper practices for an individual, party or organization.

Penalties

The consequences or punishments assigned for breaking a rule or law.

Copyright Law

Legal guidelines protecting the use of original works of authorship, including literary, musical, and artistic works.

Moral Minimum

The least amount of ethical behavior expected from an individual or organization in society, often pertaining to honesty and fairness.