Fact Pattern 25-1B

question 15

Multiple Choice

Fact Pattern 25-1B
Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 25-1B.By writing "without recourse" with her signature,Belle

• A)avoids the risk of loss from theft of the instrument.
• B)relieves herself from liability on the instrument.
• C)converts the check into a nonnegotiable instrument.
• D)locks the instrument into the bank collection process.

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Definitions:

Registration Statement

A legal document submitted to regulatory authorities providing details about an investment offering for sale to the public, typically containing financial data, risks, and other significant information.

Prospectus

An official document that a company issues to potential investors detail the offering of securities for sale, providing financial data, and disclosing risks.

Securities Act of 1933

A U.S. federal law enacted to ensure transparency and fairness in the securities market, requiring that investors receive significant information regarding securities being offered for public sale.

Due Diligence Defense

A legal defense whereby the defendant can avoid liability by proving that they took all possible steps to avoid committing an offence.