Fact Pattern 25-A1 (Questions A5-A8 apply)
Rollo obtains a check payable to his order from Simone.Rollo signs the back and gives the check to Trey.Trey writes "Pay to Trey" above Rollo's signature.
-Refer to Fact Pattern 25-A1.By writing "Pay to Trey" above Rollo's signature,Trey
A)avoids the risk of loss from theft of the instrument.
B)relieves himself from liability on the instrument.
C)converts the check into a nonnegotiable instrument.
D)locks the instrument into the bank collection process.

Question

Quizplus · Accepted Answer

By writing "Pay to Trey" above Rollo's signature, Trey endorses the check in a restrictive manner, which can help avoid the risk of loss from theft by specifying that the check is payable only to Trey.

Fact Pattern 25-A1 (Questions A5-A8 Apply)