Asked by
Mandlenkosi Manzini
on Nov 27, 2024Verified
On the back of a check "payable to Demos," Demos signs her name and negotiates the item to Ethos. To most effectively avoid a risk of loss from a theft of the check, Ethos should
A) immediately indorse the check in blank.
B) make a copy of the check and place it in a secure location.
C) write, above Demos' signature, "Pay to Ethos."
D) indorse the check "without recourse."
Risk Of Loss
The potential that an asset's value could decrease, causing financial loss to its owner or holder.
Indorsement
A legal act of signing a document, such as a check or contract, which transfers the rights or confirms the details stated.
Demos
Short for demonstrations, these are samples or presentations of a product, service, or idea to showcase its functionality or benefits.
- Distinguish between different types of indorsements and their effects on the negotiability of instruments.
- Recognize the legal implications of the method of negotiation and transfer of instruments.
Verified Answer
AR
Learning Objectives
- Distinguish between different types of indorsements and their effects on the negotiability of instruments.
- Recognize the legal implications of the method of negotiation and transfer of instruments.