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27 Factory Inc. issues a check payable to Gila, who gives it to Hometown Bank without signing it, and receives cash. The transfer of the check from Gila to Hometown is

a. an assignment.

b. a negotiation.

c. fraudulent and therefore void.

d. a sale.

28 Because a partys authenticating intent with respect to a note is shown by the name of the party written on the line that calls for the name of that party,

a. a stamped imprint of the name can be sufficient to transfer the note

. b. proof that an indorsement is legitimate is required to validate the note.

c. the name must be handwritten to negotiate the note.

d. a signature of the name must be witnessed to effect an assignment

52 Qato forges Rushs name as the drawer of a stolen check, drawn on Scrutiny Bank, makes the item payable to Qato, and deposits it in his own Scrutiny account. In response to a call from the bank, Rush ratifies the signature. In this situation, Rush is liable to pay the amount to

a. ordinary holders only.

b. HDCs only.

54 Textile Inc. sells goods to United Stores in exchange for a note signed by the buyer. Textile sells the note to Valley Finance Company. In this situation, transfer warranties arise because

a. Valley has no knowledge of any bankruptcy proceedings against United.

b. the note was transferred for consideration.

c. Textiles did not alter the note.

d. the signatures on the note were authentic and authorized

c. ordinary holders, HDCs, and holders through HDCs.

d. no one.