6. Marissa gives Larry a check made payable to cash in payment for a computer that she is buying from him.Larry then gives the check to his nephew, Gary Graduate, without indorsing it, as a graduation gift. Marissa then stops payment on the check because she claims that Larry breached the contract. When the check bounces, Gary makes a claim against Marissa for the amount of the check.Marissa responds that Gary cannot collect on the check since he is not a holder because Larry never indorsed the check to him. Which statement is true?

Gary is at least a holder

Gary is not a holder or holder in due course because the check was never indorsed

Gary is not a holder or holder in due course because of the shelter principal

Gary is not a holder or holder in due clause because Larry breached the contract

7. Name the two exceptions to the rule that a forged drawer's signature is not enforceable:

_________________

_________________

8. Acceptors have primary signature liability.

True

False

9. Bob Bookeeper is an employee of Drenched Raincoat Company (DRC). Bob has authority to sign checks on behalf of DRC. Bob needs to pay Acme Button Company $1000. Bob writes a check to "cash" and signs itbut accidentally writes out "One Hundred Dollars" in words even though he puts the proper number "$1000.00" on the check. The check is:

Payable for one hundred dollars.

only payable to a Holder in Due Course.

is void

Is payable for one thousand dollars.

10. There are three transfer warranties.

True

False