Fact Pattern 26-1
Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature.
-Refer to Fact Pattern 26-1. By writing "Pay to Patricia" above Nina's signature, Patricia
A) avoids the risk of loss from theft of the instrument.
B) relieves himself from liability on the instrument.
C) converts a legitimate negotiable instrument into a stolen instrument.
D) locks the instrument into the bank collection process.

Question

Fact Pattern 26-1
Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature.
-Refer to Fact Pattern 26-1. By writing "Pay to Patricia" above Nina's signature, Patricia​
A) ​avoids the risk of loss from theft of the instrument.
B) ​relieves himself from liability on the instrument.
C) ​converts a legitimate negotiable instrument into a stolen instrument.
D) ​locks the instrument into the bank collection process.

Quizplus · Accepted Answer

By writing "Pay to Patricia" above Nina's signature, Patricia avoids the risk of loss from theft of the instrument by making it a special indorsement, which specifies the person to whom the instrument is payable.

Fact Pattern 26-1 Nina Obtains a Check Payable to Her Order from Oran