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.After Trey writes "Pay to Trey" above Rollo's signature,further negotiation of the check
A)requires Rollo's re-indorsement and delivery.
B)requires delivery alone.
C)requires Trey's indorsement and delivery.
D)is not possible.

Question

Quizplus · Accepted Answer

When Trey writes "Pay to Trey" above Rollo's signature, he is making a blank endorsement, effectively converting the check into bearer paper. From this point on, the check can be negotiated by delivery alone, meaning that Trey needs to endorse and deliver the check to the next party who will receive it. Rollo's endorsement is no longer necessary for further negotiation.

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