Author Question: Cecilia made a check out to Gideon for 15. Gideon fraudulently changed the check to read 150, and ... (Read 96 times)

penza · **on:** Jun 24, 2018

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 in 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.

Question 2

The title of the goods sold in a documentary sale is transferred through:
A) negotiation of the document only.
B) delivery of the goods only.
C) negotiation of the document and delivery of the goods.
D) title to the goods is not transferred in a documentary sale.