The _____ Provides That the Transferee of an Instrument Acquires

question 7

Multiple Choice

The _____ provides that the transferee of an instrument acquires the same rights as the transferor had.

• A) general rule on forged indorsements
• B) dishonest employee rule
• C) imposter rule
• D) fictitious payee rule
• E) shelter rule

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Definitions:

Subjective Standard

involves a criterion for decision-making that is based on personal opinions, feelings, or perspectives, as opposed to objective, universally measurable standards.

Satisfaction

Fulfillment of an obligation or claim, often referring to the payment of a debt or completion of a contractual performance.

Contract

A legally binding agreement between two or more parties, defining and governing the rights and duties of those parties.

Discharged by Accord

The resolution of a contractual obligation through an agreement where the parties agree to new terms.