Pete, a Quality Company employee, is authorized to use Quality checks to buy supplies. Pete alters one of the checks to increase its $700 amount by $100, and exchanges it at Retail Office Supply for $700 worth of supplies and $100 cash. He keeps the cash. On the check, Retail¾an HDC¾may obtain payment for
A) $0.
B) $100.
C) $700.
D) $800.

Delores's Restaurante borrows $100,000 at 6 percent interest from El Credito y Dinero Company and signs a promissory note for that amount. El Credito changes the amount of the note to $120,000 and increases the rate to 8 percent. Delores's best defense against payment on the note is
A) breach of warranty.
B) failure of consideration.
C) material alteration.
D) nondelivery of an instrument.

GR8 Products, Inc., warrants its goods to be free of defects. Heck issues a note to obtain goods from GR8 that prove defective. If GR8 presents the note for payment
A) Heck's best defense would be breach of warranty.
B) Heck must pay the note.
C) Heck's best defense would be fraud in the inducement.
D) Heck's best defense would be failure of consideration.