What Is the Effect of the Check's Alteration on Kelsey's

question 27

Multiple Choice

What is the effect of the check's alteration on Kelsey's status as a holder in due course?

• A)On the basis that the law does not want to unduly burden holders,the alteration will affect her status as a holder in due course only because the instrument was written for an amount in excess of $500.
• B)The alteration has no effect because a holder is not charged with examining an instrument presented for payment.
• C)The alteration will affect her status as a holder in due course only if the issuer can establish that it was not negligent in allowing a thief to gain access resulting in the alteration.
• D)The alteration will affect her status as a holder in due course only if she had been put on notice of prior criminal behavior in the past on the part of Rafe.
• E)The alteration will likely prohibit her from being a holder in due course.

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Definitions:

U.S. Military

The armed forces of the United States, responsible for defending the country against external threats and ensuring national security.

Mao Zedong

The founding father of the People's Republic of China, ruling from its establishment in 1949 until his death in 1976, known for his communist policies and the Cultural Revolution.

People's Republic of China

A sovereign state in East Asia, known as the world's most populous country, governed by the Communist Party of China.

Chinese Civil War

A conflict between the Communist Party of China and the Nationalist Party (Kuomintang) from 1927 to 1949, leading to the establishment of the People's Republic of China.