Which of the Following Is True Regarding Zoe's Liability to Rohan

question 39

Multiple Choice

Which of the following is true regarding Zoe's liability to Rohan?

• A)Zoe's obligation will be enforced only to the amount of $4,000 if payment is to be made to Rohan;but if the note has been negotiated to another holder,Zoe is liable for $4,500.
• B)Unless Zoe has a written document from Rohan to the effect that the agreement was for $4,000 only,Zoe and Rohan will be legally required to split the remainder with Zoe being held responsible for $4,250.
• C)Because of the fraudulent alteration,Zoe is not liable to Rohan for any amounts under the promissory note.
• D)Zoe is liable for $4,000 regardless of whether or not Rohan has negotiated the note to another party.
• E)Taylor's obligation will be enforced only to the amount of $3,000 if payment is to be made to Rohan;but in the event the note is negotiated to a holder in due course,Taylor is liable for $3,500.

---

Definitions:

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price-taking behavior.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competitive practices based on product differentiation.

Market Structures

Refers to the organization and characteristics of different markets, varying by the number of firms, type of products, and level of competition.

Product Variety

The assortment or range of different goods or services offered by a seller or available in a market.