Exam 33: Liability of Parties

If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

The drawee does not have liability on the instrument until it _____ the instrument.

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

Signing a promissory note is an example of establishing primary liability in a negotiable instrument.

Salmond signs a note for the purpose of lending credit to John.Salmond also makes his father Richard sign the note because of his shaky financial condition.This indicates that Richard has signed the note in the capacity of a(n):

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

Presentment warranties are made by any prior transferor of the instrument at the time the person transfers the instrument.

All signatures on a negotiable instrument are guaranteed to be treated as authentic due to what type of warranty?

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? The transfer must be for consideration.And if the transferor indorses,he makes the transfer warranties to all subsequent transferees.

According to UCC section 3-401 which of the following does NOT constitute a valid signature of a negotiable instrument?