Asked by Nomzamo Lubisi on Jun 16, 2024

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Would the school be able to require that Jenna cover the amount of the check based on the law of negotiable instruments?

A) Yes, because she signed on the back with a blank unqualified endorsement.
B) Yes, because she signed on the back with a special qualified endorsement.
C) Yes, because she signed on the back regardless of the type of endorsement.
D) No, because she signed on the back using the words, "without recourse."
E) No, because the check was not properly delivered to Brad.

Without Recourse

A term indicating that the holder of a financial instrument cannot demand payment from the original issuer in case of default.

Endorse

To give support or public approval to someone or something, often used in the context of endorsing products, services, or candidates.

Negotiable Instruments

Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name written on the document.

  • Pinpoint and detail the types of endorsements and their legal effects.
  • Fathom the legal consequences that result from changes, typographical errors, and unwarranted signatures on negotiable documents.
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Verified Answer

AZ
Amika ZaragozaJun 22, 2024
Final Answer :
D
Explanation :
ED) Jenna's use of "without recourse" in her endorsement limits her liability, indicating that she does not guarantee payment if the check is dishonored. This phrase is used to disclaim the endorser's liability.E) The check was not intended for Brad, and since it was lost and not properly delivered to him by the payee or endorser, Jenna cannot be held responsible for the check being cashed by someone for whom it was not intended.