Exam 33: Liability of Parties

In the case in the text Huntington National Bank v.Guishard,Wilburn & Shorts,what was the court's holding?

According to Revised Article 3 if a bank pays a check that contains a forged indorsement:

A transfers a negotiable note to B,who in turn transfers it to C.Under what conditions has A made a transfer warranty to C?

A person who is ________ pays the negotiable instrument only if a person who is primarily liable defaults on that obligation:

Any authorized ownership and exercise over an instrument is referred to as conversion.

Able carefully drew a check for $10 on her checking account at ABC bank,payable to the order of Baker.Baker altered the check to read $100,and then negotiated it to Cain.Cain presented the check for payment to ABC bank,which paid Cain $100.The bank then deducted $100 from Able's account.When Able saw her bank statement she demanded that ABC credit her account for the altered check.ABC credited Able's account and then sued Cain.Is Cain liable?

Which of the following statements holds true for conversion?

Susan Smith steals a valuable necklace from Pamela Jones.The necklace bears Jones's full name.Smith takes the necklace to a pawnshop,sells it to the shop,and gets a check for $10,000 in the name of Pamela Jones.Smith then indorses the check in Jones's name and transfers it to Harry Anderson.Which of the following is true?

In the case in the text Marion T v.Northwest Metals Processors,what was the court's holding?

A drawee has no liability on a draft unless it certifies or accepts the draft.

In the event of a breach of a presentment warranty:

The ________ of a promissory note is primarily liable for payment of it.

XYZ Bank pays a check that contains a restrictive indorsement "for collection." This indicates that:

National bank is reluctant to lend money to James because of his shaky financial condition.However,the bank is willing to lend money to James if he signs the note and a friend also signs the note.Here,the friend serves as the:

Potter owes George $500.Potter writes a check payable to George for that amount.Later,George loses the check.Potter is now discharged from his liability on the check.

Brian signs a promissory note for $500 payable to Harwich.Harwich indorses the note "Pay to order of Stephen,Harwich" and negotiates it to Stephen.Stephen fraudulently changes the $500 to $5,000.Under these circumstances,Brian is discharged from his liability as maker of note because:

Jack received a check as payment for the work he did.He indorsed the check "without recourse." What legal effect does this have?

How can an indorser avoid secondary liability on the instrument? Can an indorser disclaim transfer warranty liability?

Jerry Hall makes out a note for $100 in such a way that someone could alter it to read $10,000.Someone alters the note and negotiates it to Pete Mason,who can qualify as a holder in due course.Which of the following statements is true?

UCC section 3-604 allows for the liability associated with a negotiable instrument to be canceled by the person entitled to enforce the instrument.