Asked by Trevia Knight on May 07, 2024
Verified
Indorsements with ineffective restrictions include which of the following?
A) The indorser makes the rights of the indorsee subject to the happening or nonhappening of a specified event.
B) An indorsement "For Collection."
C) An indorsement stating "Pay to Melanie for Sharon."
D) An indorsement that says "For deposit only."
Ineffective Restrictions
Limitations or rules that fail to accomplish their intended purpose, often due to being too vague, unenforceable, or not aligned with overarching goals.
- Acquire knowledge on the specific rules of endorsement and their deviations.
Verified Answer
CB
Chakiska BrownMay 11, 2024
Final Answer :
A
Explanation :
An indorsement making the rights of the indorsee subject to the happening or nonhappening of a specified event is considered an ineffective restriction because it attempts to condition the payment, which is not permissible under the Uniform Commercial Code (UCC) regarding negotiable instruments.
Learning Objectives
- Acquire knowledge on the specific rules of endorsement and their deviations.
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