Solved

Cecilia Made a Check Out to Gideon for $15

Question 21

Multiple Choice

Cecilia made a check out to Gideon for $15.Gideon fraudulently changed the check to read $150,and cashed it at Corner Bank.Is Cecilia discharged from liability on the check?


A) Yes,Cecilia owes nothing on the check because alteration of a check is a real defense and real defenses are good even against holders in due course.
B) No,Cecilia pays $150 because of the impostor rule.
C) No,Cecilia pays $150 because she is not an indorser or accommodation party.
D) Yes,Cecilia owes nothing unless Corner Bank is a holder in due course,in which case she owes the original $15.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions