Asked by Collin Shaffer on May 20, 2024
Verified
What type of liability occurs when a person signs a negotiable instrument?
A) Warranty
B) Payee
C) Signature
D) Primary
E) Secondary
Signature Liability
Liability attributed because of a party’s signature on an instrument.
- Differentiate between the responsibilities of primary and secondary liability associated with negotiable instruments.
Verified Answer
MC
Maria CodispotiMay 23, 2024
Final Answer :
C
Explanation :
Uniform Commercial Code Section 3-401(a)imposes liability if a party,or the party's agent,signs the instrument.This is known as signature liability.
Learning Objectives
- Differentiate between the responsibilities of primary and secondary liability associated with negotiable instruments.
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