Arthur makes a note payable to Bob. Bob negotiates the note to Carl, Carl to David, David to Elvis and Elvis to Fred. Fred, a holder in due course, sees that David, a friend, has endorsed the note. If he crosses off David's endorsement, it will have the effect of: A) discharging all parties. B) discharging David. C) discharging David and Elvis. D) discharging all but Arthur.
Arthur makes a note payable to Bob. Bob negotiates the note to Carl, Carl to David, David to Elvis and Elvis to Fred. Fred, a holder in due course, sees that David, a friend, has endorsed the note. If he crosses off David's endorsement, it will have the effect of: A) discharging all parties. B) discharging David. C) discharging David and Elvis. D) discharging all but Arthur.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Arthur makes a note payable to Bob. Bob negotiates the note to Carl, Carl to David, David to Elvis and Elvis to Fred. Fred, a holder in due course, sees that David, a friend, has endorsed the note. If he crosses off David's endorsement, it will have the effect of:
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A) discharging all parties.
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B) discharging David.
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C) discharging David and Elvis.
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D) discharging all but Arthur.
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