Identify the Statement That Holds True of Revised Article 3

question 37

Multiple Choice

Identify the statement that holds true of revised Article 3 of the Uniform Commercial Code regarding checks.

• A) Under revised Article 3, an instrument does not qualify as a check if it contains the engraving "money order" on its face.
• B) Revised Article 3 prevents an instrument from meeting the "unconditional promise" if it requires a countersignature of a person whose specimen signature appears on the draft.
• C) Under revised Article 3, a payor bank may pay a postdated check before the stated date unless the drawer has notified the bank of postdating pursuant to a procedure set out in the Code.
• D) Revised Article 3 states that an instrument which names a fixed time for payment should not contain a clause permitting the time for payment to be accelerated at the option of the maker.

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Definitions:

Overcompensation

An excessive response or behavior in an attempt to correct a perceived weakness or fault.

General Adaptation Syndrome

A three-stage response model describing the physiological changes the body goes through under stress: alarm, resistance, and exhaustion.

Resistance

The act of opposing or withstanding; in psychology, it refers to the opposition against the uncovering of unconscious material or changing behaviors.

Fight-Flight Response

An acute stress response involving a physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.