Commercial Law, 2012 Bar — Question 27

MULTIPLE CHOICE

Y, as President of and in behalf of AAA Corporation, as a way to accommodate X, one of its stockholders, endorsed the check issued by X. Which statement is most accurate? A) it is an ultra vires act. B) it is a valid indorsement. C) the corporation will be held liable to any holder in due course. D) it is an invalid indorsement.

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