What Is the Effect of Susan Receiving Notice the Day

question 66

Multiple Choice

What is the effect of Susan receiving notice the day after she cashed the check for Bob that the check had been stolen?

• A) The notice has no effect on her status as holder in due course because it was provided after she cashed the check.
• B) The notice prevents her from being a holder in due course.
• C) The notice prevents her from being a holder in due course only if Bob had been convicted of check cashing offenses in the past since she should have checked his criminal record.
• D) The notice prevents her from being a holder in due course only if she subjectively knew that Bob had been charged criminally with check cashing violations in the past.
• E) The notice prevents her from being a holder in due course because it was presented to a business; only individuals can avoid the effect of notice of theft by cashing a check prior to receiving notice.

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Definitions:

Creative

The ability to think of new and original ideas; characterized by innovation and imagination.

Tend-And-Befriend Response

A behavioral response to stress that involves seeking social support and nurturing others, as opposed to fight-or-flight reactions.

Stressful Situation

Circumstances or events that cause a significant amount of stress, anxiety, or discomfort in individuals.

Affiliation-Related Behaviors

Actions and conduct associated with establishing and maintaining social connections with others.