What is the effect of the check's alteration on Kelsey's status as a holder in due course?
A)On the basis that the law does not want to unduly burden holders,the alteration will affect her status as a holder in due course only because the instrument was written for an amount in excess of $500.
B)The alteration has no effect because a holder is not charged with examining an instrument presented for payment.
C)The alteration will affect her status as a holder in due course only if the issuer can establish that it was not negligent in allowing a thief to gain access resulting in the alteration.
D)The alteration will affect her status as a holder in due course only if she had been put on notice of prior criminal behavior in the past on the part of Rafe.
E)The alteration will likely prohibit her from being a holder in due course.

Question

Quizplus · Accepted Answer

A)Suppose a person receives an instrument that has clearly been altered but she
does not notice the alteration.According to UCC requirements [3-302a)1)],the holder's awareness does not matter;the mere existence of such irregularities means that the holder cannot be a holder in due course.
B)Suppose a person receives an instrument that has clearly been altered but she does not notice the alteration.According to UCC requirements [3-302a)1)],the holder's awareness does not matter;the mere existence of such irregularities means that the holder cannot be a holder in due course.
C)Suppose a person receives an instrument that has clearly been altered but she does not notice the alteration.According to UCC requirements [3-302a)1)],the holder's awareness does not matter;the mere existence of such irregularities means that the holder cannot be a holder in due course.
D)Suppose a person receives an instrument that has clearly been altered but she does not notice the alteration.According to UCC requirements [3-302a)1)],the holder's awareness does not matter;the mere existence of such irregularities means that the holder cannot be a holder in due course.
E)Suppose a person receives an instrument that has clearly been altered but she does not notice the alteration.According to UCC requirements [3-302a)1)],the holder's awareness does not matter;the mere existence of such irregularities means that the holder cannot be a holder in due course.

What Is the Effect of the Check's Alteration on Kelsey's