Exam 27: Liability of Parties

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A(n) ___________ signs an instrument to lend his credit to an instrument, and his liability is determined by the capacity in which he signs.

(Multiple Choice)
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Notice of dishonor of an instrument must be given:

(Multiple Choice)
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Any person who, by his own negligence, substantially contributes to the making of an unauthorized signature may not assert the lack of authority as a defense against a holder in due course.

(True/False)
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An acceptance must be written on the draft.

(True/False)
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"Presentment" is necessary within 10 days of the date of issuance of a check.

(True/False)
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Conversion of an instrument will occur if:

(Multiple Choice)
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What is the difference between the liability of a qualified indorser and an unqualified indorser? Does the fact that a person has given a qualified indorsement mean that the person has no liability? Explain.

(Essay)
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Presentment is excused where the acceptor is undergoing bankruptcy.

(True/False)
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By paying the holder on an instrument, a party may be discharged from liability.

(True/False)
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To certify a check, the bank must:

(Multiple Choice)
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In Cohen v.Disner the court found that Disner was not liable on the check because he had no enforceable obligation to pay, the check was drawn by him in a representative capacity, and the holder had notice that Disner's signature was in the capacity of an agent.

(True/False)
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Warranty liability is based on signature; thus, it may not be imposed on nonsigners.

(True/False)
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Parties with secondary liability unconditionally promise to pay the instrument.

(True/False)
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