Which of the Following Is the Result If a Payee

question 13

Multiple Choice

Which of the following is the result if a payee who receives an instrument with missing information completes the missing information in a way that is inconsistent with the intent of issuer,and the instrument has been clearly materially altered?

• A)The instrument is considered materially altered,but it only prevents transfer to a holder in due course if the transferee participated in the material alteration.
• B)The person taking the instrument cannot become a holder in due course.
• C)The instrument is considered materially altered,but it only prevents transfer to a holder in due course if the holder in due course had knowledge that the payee had done the alteration.
• D)There is no effect so long as the payee can establish that he or she did not receive any more consideration than that to which the payee was entitled.
• E)The alteration does not prevent a person taking the flawed instrument from becoming a holder in due course.

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Definitions:

Theorists

Individuals who formulate, describe, and analyze theories or concepts in a particular field of study.

Prescriptive Theory

A theoretical framework that outlines specific actions or behaviors that should be taken in particular situations, often providing guidelines or protocols.

Essential Ingredients

Fundamental components or elements required for something to function or achieve its purpose.

Professional Commitment

Professional commitment indicates the dedication and loyalty an individual exhibits towards their profession or career, often reflecting in their work ethic and engagement.