Angry employee.Martin is in charge of payroll and other expenses for ABC,Inc.He becomes very angry with his boss Adam because Adam started dating Martin's girlfriend Stacy.Martin decided to quit but not before he got some extra money from ABC,Inc.Martin wrote five checks from the account of ABC,Inc.to pay off the five credit card companies that Martin owed money.The credit card companies took the checks without reason to be suspicious as to the source of payment.The checks to the credit card companies in total amounted to $30,000,and each check was in an amount under $10,000.Martin also made out ten checks on the account of ABC to twenty alleged employees who did not really exist.Each of these checks was in the amount of $5,000.Martin took the checks,endorsed and cashed the checks in the names of the various fake employees,and kept the cash.Finally,Martin discovers through office gossip that Adam has been looking for another job with XYZ,Inc.located in a neighboring state and that Adam is supposed to go there for an in-person interview in a few weeks.Martin sets up an interview with XYZ,Inc.pretends to be Adam,and induces XYZ,Inc.to give him,posing as Adam,a check for $5,000 as a signing bonus.Martin immediately endorses the check pretending to be Adam and pockets the cash.Finally,Martin leaves town heading for the Caribbean.Is ABC,Inc.entitled to a refund from its bank for the checks the bank paid written to fake employees?

A) Yes,because Martin forged the names of the employees.
B) Yes,because Martin posed as an imposter in regard to the employees.
C) Yes,because the bank has a cause of action against Martin and can likely get a default judgment.
D) No,because of the imposter rule.
E) No,because of the fictitious-payee rule.

Check Cashing Business.Susan owns and operates a check cashing business.A customer,Bob,claiming to be Sam,came in and cashed a $2,000 check issued by ABC Trucking to Sam.The day after Susan cashed the check,she received a notice from ABC Trucking that some checks had been stolen.It was later discovered that the customer had forged Sam's name on the check issued by ABC Trucking.At the time she took the ABC Trucking check,Susan was very busy with several customers in line.She simply glanced at the check and cashed it.A reasonable examination would have revealed that the check had been materially altered and changed from the amount of $200 to $2,000.Susan decided that she needed to hire some people to help her because she also had a problem with another check.On the same day that she took the ABC Trucking check,she took a check from another customer,Maurice.It was later discovered that the check from Maurice,which was four months old,was the subject of a dispute between Maurice and the issuer of the check for whom Maurice had done some work.The issuer claimed that the work was improperly done.Both ABC Trucking and the issuer of the check to Maurice stopped payment on the checks.Susan claims that she was entitled to the status of a holder in due course and was entitled to payment on both checks.What is the effect on Susan's status as a holder in due course in taking the check from the customer that was four months old?

A) There is no effect on her status as a holder in due course,because an instrument is only considered overdue if it is outstanding for 120 days.
B) There is no effect on her status as a holder in due course,because an instrument is only considered overdue if it is outstanding for 180 days.
C) There is no effect on her status as a holder in due course,because an instrument is only considered overdue if it is outstanding for one year.
D) She would not be considered a holder in due course,because a check is considered overdue 90 days after its date.
E) It has no effect,because a check is never considered overdue.

Which of the following is a substitute for cash?

A) A negated instrument
B) A promised instrument
C) A negotiable instrument
D) A promissory agreement
E) A negotiable oral promise

An automated signature satisfies the Uniform Commercial Code signature requirement for negotiable instruments.

Under the Uniform Commercial Code,how can a proper presentment be made?

A) By any commercially reasonable means
B) Through a clearinghouse procedure
C) At a place designated in the instrument
D) By any commercially reasonable means,through a clearinghouse procedure,or at a place designated in the instrument
E) Through a clearinghouse procedure or at the place designated in the instrument,but not by any commercially reasonable means

Companies that make a significant profit from completing more orders will use which dispatching rule?

A) shortest processing time
B) first-come, first served
C) earliest due date
D) longest processing time

The Tapestry™ Segmentation system divides and sorts small neighborhoods into categories using 60 or more characteristics such as income, home value, occupation, and education, as well as activity interests, such as sports, dancing, the arts, and so forth. This market research tool is an example of ________ segmentation.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic