Fact Pattern 26-1B (Questions B8-B10 Apply)

question 18

Multiple Choice

Fact Pattern 26-1B (Questions B8-B10 apply)
Destiny obtains a check payable to her order from Eugenia. Destiny signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 26-1B. After Destiny signs the back and adds the notation "without recourse," she adds, "Pay to Florence." This constitutes

• A) a blank qualified indorsement.
• B) a special qualified indorsement.
• C) a restrictive indorsement.
• D) none of the choices.

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Definitions:

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Sarbanes-Oxley Act of 2002

U.S. federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aiming to improve corporate governance and financial practices.

Widespread Misstatements

False or misleading statements that are not isolated incidents but occur on a broad scale.

Family Resemblance Test

A legal test applied to determine whether a new financial instrument should be classified as a security under U.S. law.