Which of the Following Was the Result in the Case

question 33

Multiple Choice

Which of the following was the result in the Case Opener,involving the check taken in good faith by a market,later returned to the market based on a stop payment order,and purchased from the market by the plaintiff who sued Cigna,the issuer of the check?

• A)The plaintiff was allowed to recover under the shelter principle and holder-in-due-course status.
• B)The plaintiff was not allowed to recover because the market misrepresented the status of the check.
• C)The plaintiff was allowed to recover because the market misrepresented the status of the check.
• D)The plaintiff was not allowed to recover because of the shelter principle and holder-in-due-course status.
• E)The plaintiff was not allowed to recover because he took the check knowing of a problem.

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Definitions:

Fixed Manufacturing Overhead

The set of manufacturing costs that do not vary with the level of production, such as salaries of factory supervisors and rent of the manufacturing facility.

Manufacturing Overhead Budget

A plan that outlines the expected manufacturing overhead costs for a period, helping businesses control and allocate expenses effectively.

Direct Labor-Hour

A measure of the labor time directly involved in producing goods, often used to allocate labor costs to products.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and indirect materials.