Exam 33: Liability of Parties

A(n)________ is a person who signs a negotiable instrument for the purpose of adding his or her name and liability to another party to the instrument.

Secondary liability is a ________ liability.

Which of the following is not considered when determining a reasonable time in which a demand instrument is due?

"Responsibility" with respect to instruments includes:

What section of the UCC addresses enforcement of a negotiable interest that has been altered?

The transferor of which of the following instrument cannot disclaim transfer warranties?

The obligation of an acceptor is:

How can an indorser avoid secondary liability?

The rationale for the impostor rule is that the responsibility for determining the true identity of the payee:

Jeff loans his childhood friend Dave $5,000.Dave gave Jeff a promissory note for $5,000.Jeff later tears up the note with the intent that Dave no longer owes him the money.Which of the following is true?

An indorser to a negotiable instrument is generally primarily liable.

Penny draws a check for $25 on her Big Bank checking account payable to the order of Carol.Carol puts a "5" in front of the 2,raising the check to $525,and indorses it.She then negotiates the check to Mel.Mel then presents the check for payment to Big Bank,which pays her $525 and charges Penny's account that amount.Penny asks Big Bank to recredit her account for $500,and Big Bank does so.What recourse does the Bank have and against whom?

Warranties do not apply without the indorsement of the transferor.

In order for an authorized agent or representative to avoid personal liability,he should:

A transferor of a negotiable instrument for consideration warrants to his transferee that the negotiable instrument has not been altered.

In the case in the text National College Loan Trust 2004-1 v.Irizarry,what was the court's holding?

Menzes is the Treasurer of ABC Corp.As such,he is authorized to sign checks for the corporation.A supplier bills ABC for a legitimate obligation.Menzes makes out a check to the supplier and signs it "ABC Corp. ,by Menzes,Treasurer." Who is liable on this check?

A holder of a check or draft who wants to get payment on it should first present the check or draft to the drawer.

Suzy asks Joe to fix her computer while she is on vacation.Because she does not know how much the job will cost,she gives Joe a signed blank check with Joe as the payee.Joe,of course,is supposed to fill in the correct amount and cash the check at Suzy's bank.The job cost $200,but Joe filled out the check for $10,000 and then negotiates it to Harry.Harry takes the check in good faith,for value,and without notice of the false addition.Assuming that Suzy's bank does not pay Harry and Harry pursues her on her secondary liability,does Suzy have an alteration defense against Harry?

Indorsers are not contractually liable on negotiable instruments they indorse.