Asked by Kimberly Valencia-Franco on May 10, 2024
Verified
Which of the following is false regarding the UCC's signature requirement for a negotiable instrument?
A) The signature may be an assumed name.
B) A signature may be made by means of a device or machine.
C) A signature may be made manually.
D) The signature of an agent on behalf of the principal binds the principal and satisfies the signature requirement.
E) The UCC prohibits an X from being used as a signature.
Assumed Name
An assumed name, also known as a trade name or "doing business as" (DBA), is a name a business uses that is different from its legal, registered name.
Device
A piece of equipment designed for a particular purpose, often electronic in nature.
- Distinguish between the requirements for signatures on negotiable instruments.
Verified Answer
KB
Katsuky BakugooMay 15, 2024
Final Answer :
E
Explanation :
The Uniform Commercial Code (UCC) is flexible regarding the form of signatures on negotiable instruments. It allows signatures to be made in various ways, including assumed names, by devices or machines, manually, or even by an agent on behalf of a principal. However, it does not prohibit the use of an "X" as a signature. An "X" can be considered a valid signature if it is intended as such by the party.
Learning Objectives
- Distinguish between the requirements for signatures on negotiable instruments.