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:

Insufficient Authority

A situation where an individual does not possess enough power or control to effectively execute decisions or enforce rules.

Uncompensated Work Time

Periods where individuals perform work-related tasks without receiving financial compensation or benefits.

Great Man Theory

A leadership theory which postulates that leaders are born with inherent traits, and these traits are responsible for their power and success.

Heroic Theory

The belief that history is primarily shaped by the actions and decisions of great men or heroes whose leadership and vision bring about significant change.