Question 1

The accidental destruction of a negotiable instrument will not result in its cancellation.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Jessie is the maker of a $1000 promissory note in favor of Tyler.Tyler subsequently indorses the note to Ryan by signing just his name.Ryan in turn indorses it to Breanna by indorsing the back of the note,"Without recourse,Ryan." Breanna then indorses it to Liz,the present holder,with a special indorsement.If the note is dishonored by Jessie after it is properly presented to her for payment by Liz,then Liz,after giving timely notice to Tyler,Ryan,and Breanna,may collect payment under signature liability from

Accepted Answer

A) Tyler only. 
B) Breanna and Tyler only. 
C) either Tyler, Ryan, or Breanna. 
D) neither Tyler, Ryan, nor Breanna. 
A) Tyler only. 
B) Breanna and Tyler only. 
C) either Tyler, Ryan, or Breanna. 
D) neither Tyler, Ryan, nor Breanna.

Question 4

An indorser who writes "without recourse" next to her signature on a negotiable instrument is not liable for payment.

Accepted Answer

A) True 
 B)False

Question 5

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 
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

Exam 26: Liability for Negotiable Instruments

The accidental destruction of a negotiable instrument will not result in its cancellation.

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

An indorser who writes "without recourse" next to her signature on a negotiable instrument is not liable for payment.

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

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

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Dispute Resolution

Crime

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Negligence, Strict Liability, and Product Liability

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Introduction to Contracts

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Written Contracts

Third Parties

Performance, Breach and Discharge

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Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

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Secured Transactions

Creating a Negotiable Instrument

Accountants' Liability

Agency Law

Employment and Labor Law

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Starting a Business: LLCs and Other Options

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