Exam 26: Liability for Negotiable Instruments

Cecilia made a check out to Gideon for $15.Gideon fraudulently changed the check to read $150,and cashed it at Corner Bank.Is Cecilia discharged from liability on the check?

An instrument ordering someone else to pay money is called a(n)

What term is used to indicate the passing on of an instrument that one knows to be forged?

Check kiting is defined as

Alejandro signs on the back of an instrument;he is considered to be

Anyone who presents a check for payment makes certain warranties.Which of the following is NOT one of those warranties?

Ivy wants to buy a necklace from Bethany for $500 and offers to write a check.To protect herself,Bethany insists that Ivy give her a certified check.If Ivy does this,who then becomes primarily liable?

Generally,indorsers are not liable under signature liability if

Dwight Stringer signed three promissory notes as an agent for his company.The first,he signed "Dwight Stringer,agent for Park Systems,Inc." The second,he signed "Dwight Stringer,Agent." The third note was signed merely "Park Systems,Inc." Discuss the liability of Dwight and Park Systems,Inc.on each of the notes.

Jessie is the maker of a $1,000 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

When a negotiable instrument is transferred,the transferor warrants all of the following EXCEPT

Conversion means that someone has stolen an instrument or a bank has paid a check that has a forged indorsement.

When a person indorses a check,the indorser assumes contractual liability based on the indorsement.This liability expires unless presentment is made

Assume that Joel signs a promissory note to Andrew,who in turn negotiates the instrument to Luke.Of the three,Joel is the only person who has primary liability.

Warranty liability is the liability of someone who gives payment on a negotiable instrument.

Under the UCC,all of the following have the right to enforce payment of an instrument EXCEPT

An accommodation party on a negotiable instrument

Maurina Barker is an agent of Southland,and she is authorized to sign checks on Southland's bank account.If Maurina signs a check as "Maurina Barker,as agent for Southland" she is not liable on the instrument.

Sandy may be charged a fee,but will not face criminal penalties for writing checks on an account with insufficient funds to pay them.

A drawee has primary liability on a draft.