When an Instrument Fails to Meet the Technical Requirements Necessary

question 65

Multiple Choice

When an instrument fails to meet the technical requirements necessary to qualify as a negotiable instrument,which of the following statements is true?

• A)The instrument is still enforced as a negotiable instrument if the holder can establish detrimental reliance based on a reasonable belief that the instrument qualified as a negotiable instrument.
• B)The instrument is still enforced as a negotiable instrument if it has been accepted by a bank.
• C)The instrument is still enforced as a negotiable instrument if it has been transferred to a holder in due course.
• D)The instrument is null and void and of no use to the holder.
• E)The instrument may qualify as an enforceable contract.

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Definitions:

Welfare Rolls

Lists or records of individuals or families receiving government assistance benefits, typically for those living below the poverty line.

Noncash Transfers

A mode of transferring wealth or benefits without the exchange of physical cash, often utilized in government assistance programs.

Income Distribution

The way in which total income is shared among individuals or groups within an economy, impacting economic equality.

Labor Market Discrimination

The unfair treatment of workers based on race, gender, age, or other non-job-related characteristics, affecting hiring, wages, and promotion.