Asked by Nguyen Hien Minh Quan on May 28, 2024
Verified
According to the UCC, which of the following is true regarding when a person has notice of a fact?
A) Under the UCC a person has notice of a fact only when the person has actual knowledge of the fact.
B) Under the UCC a person has notice of a fact under the following two circumstances: (1) when the person has actual knowledge of the fact, and (2) when the person receives notice or notification of the fact.
C) Under the UCC a person has notice of a fact under the following three circumstances: (1) when the person has actual knowledge of the fact, (2) when the person receives notice or notification of the fact, and (3) when the person has reason to know the fact exists.
D) Under the UCC a person has notice of a fact only when the person has signed a verification to the effect that notice was received.
E) Under the UCC a person has notice of a fact only when the person receives written notification either through regular mail or electronic means.
Notice
A formal communication or announcement given to a party, usually in writing, about an action or condition.
UCC
A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American states.
Actual Knowledge
Direct awareness or understanding of a fact, without needing to infer from other facts.
- Understand the implications of specific UCC sections related to notice and knowledge of facts that affect negotiable instruments.
Verified Answer
Learning Objectives
- Understand the implications of specific UCC sections related to notice and knowledge of facts that affect negotiable instruments.
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