Exam 26: A: Liability,defenses,and Discharge

GR8 Products,Inc. ,warrants its goods to be free of defects.Heck is?sues a note to obtain goods from GR8 that prove defective.If GR8 presents the note for payment

Under the UCC,a fictitious payee's indorsement is not treated as a forgery.

Dishonor occurs when acceptance of an instrument cannot be obtained within the prescribed time.

Kip is Lulu's agent and is authorized to write checks on Lulu's account in Metro Bank.Kip writes a check "pay to the order of Nemo." Kip signs the check "Lulu,by Kip,agent." If Metro Bank dishonors the check,liability extends to

Warranty liability on a negotiable instrument does not require a signature and extends to both signers and nonsigners.

Blayne writes a check "pay to the order of Cherry" drawn on Blayne's account at Dixie Bank.Cherry presents the check for payment to Dixie Bank,which ac?cepts it.The bank is

Sara agrees to cosign a promissory note for Tom to buy a sport utility ve?hi?cle.The note is payable to Uno Bank.Sara is an accommodation

Presentment war?ranties protect the person who presents an instrument for payment.

Dewey is Ezra's agent and is not authorized to sign checks or notes on Ezra's behalf.Despite the lack of authority,Dewey issues a note "payable to the order of Fab Finance Company [signed] Ezra,by Dewey." Liability on this note extends to

An agent who signs just her own name on an instrument will be personally liable to a holder in due course who has not notice of her agency status.

Superior Company draws a check payable to Ted.Uri makes a note payable to Vital Finance Corporation.Primarily liable parties include

Pacific Bank receives a check drawn by Qiana.The check is re?ceived af?ter the established "cutoff" hour.Payment can be postponed without dishonor

Eula signs a check "pay to the order of Eula" and presents to First National Bank for payment.The types of liability associated with this check are

Bob writes a check on his account at County Bank to Darby,a fa?mous singer.The person claiming to be Darby is an imposter,however,named Etta.Etta indorses the check to Felipe,for whom County Bank cashes it.Ultimately,the loss will most likely fall on

Burt,a mentally impaired person,is asked by Carl to sign a piece of pa?per that Carl says is an autograph book.In fact,the document is a note.If later sued on the note by an HDC

Vera gives Willy a $459 check as payment for a debt.Willy crudely raises the amount of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike.Xtreem deposits the check in its Yankee Bank account.Vera is liable for the payment of $5,000 to

Transfer warranties attempt to impose liability on the wrongdoer or the person who dealt face to face with the wrongdoer.

Pete,a Quality Company employee,is authorized to use Quality checks to buy supplies.Pete alters one of the checks to increase its $700 amount by $100,and exchanges it at Retail Office Supply for $700 worth of sup?plies and $100 cash.He keeps the cash.On the check,Retail-an HDC-may obtain pay?ment for

Fact Pattern 26-1B Jake is the maker of a $2,000 promissory note payable to Kim.Kim indorses the note to Lyron who,in turn,indorses it to Mona,who then in?dorses it to Neville,the present holder. -Refer to Fact Pattern 26-1B.Neville properly pre?sents the note to Jake for pay?ment,but Jake dishonors it.With timely notice to the proper parties,Neville may collect payment on the note from

An acceptor is primarily liable on an instrument.