What is the significance of becoming the holder of a bearer instrument acquired illegally (e.g. stolen) and then legally having the power to pass the instrument on to an innocent third party?
A negotiable instrument payable to bearer by the person issuing the check may legally get into the hands of a thief who under the UCC actually becomes a holder. Although the thief has no right to the instrument, he/she does have the legal power as a holder to pass the instrument on for consideration. The outcome is that the party who initially issued the instrument is responsible for payment to the innocent third party who received it without knowing the circumstances. The person who initially issued the check, of course, could try to collect from the thief, but good luck on that one.
You might also like to view...
A defined contribution plan promises employees a fixed annual pension benefit
a. True b. False Indicate whether the statement is true or false
To perform a vertical analysis of an income statement, you would divide each line item on the statement by:
A. net income. B. operating expenses. C. sales. D. cost of goods sold.
A low-cost provider strategy can defeat a differentiation strategy when
A. sellers are not charging a price premium. B. customers are basically satisfied and don't think extra attributes are worth a higher price. C. many rivals are pursuing a similar differentiation approach. D. a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. E. there are few ways to differentiate a product or a service and many buyers perceive these differences valuable.
Simon is an attorney who has been hired by Naptune, Inc to defend against claims of profiteering. While discussing the charges with Mark, who is an employee of Naptune, Simon learns that Naptune is about to engage in profiteering again
In this scenario, which of the following statements is true? A) Simon is legally obliged to inform the police about any future criminal activities of Naptune, Inc. B) Simon cannot legally include this information in his work product and inform the court. C) Simon can only divulge this information to the police if Mark explicitly permits it. D) Simon can include this in the work product, but can choose not to inform the authorities.