Asked by Cameron Conley on Jun 04, 2024
Verified
Liam, who is authorized to draw checks on Manufacturing Company's account, signs a check preprinted with the company's name with a signature that reads simply, "Liam." On this check, Liam is
A) proportionately liable.
B) primarily liable.
C) secondarily liable.
D) not liable.
Primarily Liable
Being directly responsible or obligated in a legal or financial context, often referring to the party most accountable for fulfilling an obligation.
Authorized
Having official permission or power to do something or for something to take place.
- Examine the consequences of liability that arise from agency and representation in the process of executing negotiable instruments.
Verified Answer
CS
chandrika sathyamurthyJun 11, 2024
Final Answer :
B
Explanation :
Liam is primarily liable because as the person who signed the check, he is the primary party responsible for the payment. In the context of negotiable instruments, the signer of a check is the party primarily liable to the payee or holder.
Learning Objectives
- Examine the consequences of liability that arise from agency and representation in the process of executing negotiable instruments.