Jill in good faith and for value gets from kit a

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17. Jill, in good faith and for value, gets from Kit a check “payable to the order of bearer.” Jill does not know that Kit stole the check. Jill is a. an HDC. b. not an HDC, because Kit did not acquire the check for value. c. not an HDC, because Kit did not acquire the check in good faith. d. not an HDC, because the check is a bearer instrument. ANSWER: A PAGE: 489 TYPE: =
NAT: AACSB Reflective AICPA Legal A18. Florencia, who is not a GigaBank customer, attempts to cash a check drawn on the bank. The check is considered dishonored if GigaBank PAGE: 490 TYPE: N
A19. Bob receives a check from Chris. Without Bob’s knowledge, Dan indorses it in his own name and deposits it in his account at Elm City Bank. In Bob’s subsequent suit against the bank for the money, the court will most likely rule in favor of PAGE: 492 TYPE: =
A20. Clem gets a $100 check as a gift from Daria. Clem crudely increases the amount of the check to $1,00—the alteration is obvious—and transfers it to eReady Sets, Inc., in exchange for a 3D HD TV. eReady deposits the check in its bank account at First Town Bank. HDCs of this check include PAGE: 493 TYPE: =
CHAPTER 26 A1. Ethel signs a note “payable to the order of Fidelity Bank.” Fidelity indorses the note in blank and negotiates it to Ghani, who sells it to Huck. Liability associated with the transfer of the note from Ghani to Huck is a. fitness. b. quality. c. signature. d. warranty. ANSWER: D PAGE: 498 TYPE: =
NAT: AACSB Reflective AICPA Legal A2. Puck signs a check “pay to the order of Quik Mart” drawn on Puck’s account in Regional Bank. Puck shows the check to Silky, who agrees that the signature is Puck’s and that Quik Mart is owed the amount that the check represents. Quik Mart signs the back of the check. Liability on this check extends to PAGE: 498 TYPE: =
NAT: AACSB Reflective AICPA Legal A3. Toby signs a note “payable to the order of United Credit Union.” Unless Toby has a valid defense against payment, Toby’s liability on this note is PAGE: 498 TYPE: =

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