Question 1

A check was indorsed as follows:
Which of the following will discharge all of the indorsers?
Jessica Hall
Without recourse
Paul Samuels
Collection guaranteed
Melissa Liston

Accepted Answer

A)  notice of dishonor after 30 days' time
B)  the "without recourse" indorsement within the chain
C)  insolvency of drawer
D)  certification of the check

Question 2

Suppose that Emmett impersonates a famous clown.He goes into an advertising agency and convinces the manager to issue a check to him in the name of the famous clown,purportedly as part of a fund-raising campaign for a nursing home for old retired clowns.If Emmett negotiates the check to a check-cashing store by forging the name of the famous clown,then the ad agency will be able to argue that the bank must reimburse the account because the bank paid a check on a forged signature.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT one of the five ways to discharge a negotiable instrument?

Accepted Answer

A)  payment
B)  cancellation
C)  alteration
D)  presentation

Question 4

Discharge means that

Accepted Answer

A)  someone has stolen an instrument.
B)  an obligor refuses to pay an instrument that is due.
C)  liability on an instrument terminates.
D)  a bank has paid a check that has a forged indorsement.

Question 5

An accommodation party and a co-maker of a note have the same liability on an instrument.

Accepted Answer

A) True 
 B)False

Exam 26: Liability for Negotiable Instruments

Discharge means that

Correct Answer
verified

A check was indorsed as follows: Which of the following will discharge all of the indorsers? Jessica Hall Without recourse Paul Samuels Collection guaranteed Melissa Liston

Correct Answer
verified

Which of the following is NOT one of the five ways to discharge a negotiable instrument?

Correct Answer
verified

Correct Answer
verified

An accommodation party and a co-maker of a note have the same liability on an instrument.

Correct Answer
verified

Exam 26: Liability for Negotiable Instruments

Discharge means that

Correct AnswerverifiedShow Answer

A check was indorsed as follows: Which of the following will discharge all of the indorsers? Jessica Hall Without recourse Paul Samuels Collection guaranteed Melissa Liston

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the five ways to discharge a negotiable instrument?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An accommodation party and a co-maker of a note have the same liability on an instrument.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified