Exam 40: Liability of Parties

Anupama drew a check on her account at Mortimer Bank payable to the order of Prahlad. When Prahlad presented the check for payment, Mortimer Bank refused to honor the check. Under these circumstances, the bank _____.

A nonindorsing transferor makes:

James draws a check on his account at Harper Bank payable to the order of Terry. James does not ask Harper Bank to accept or certify the check. If Harper Bank does not pay the check when Terry presents it for payment, then:

If an authorized representative signs his name as the representative of a drawer of a check without noting his representative status, but the check is payable from an account of the represented person who is identified on the check, the signer is not liable on the check as long as his signature was authorized.

The terms of the contract of the parties to a negotiable instrument are set out in:

Which of the following statements is true of the obligation of the maker?

Which of the following statements is true of primary liability on a check when it is issued?

The impostor rule regarding negotiable instruments:

Igor signed a note to Gogh Bank, and his friend Sergei also signed the note as an accommodation maker. If Igor defaults on the note when it is due, what are Sergei's rights and obligations?

If a person purporting to act as a representative signs an instrument by signing either the name of the represented person or the name of the signer, that signature binds the represented person to the same extent she would be bound if the signature were on a simple contract.

A person who transfers a negotiable instrument to someone else and for consideration does not warrant that all signatures on the instrument are authentic or authorized.

Gabrielle borrows $1,000 from Frank to pay for school and gives Frank a note for that amount. Frank wants Gabrielle's father to sign as an accommodation party. Gabrielle's father signs below Gabrielle's signature on the fall of the note. Which of the following statements is true of this case?

People who present drafts for warranties:

Mack is Bertha's agent and is authorized to sign checks for her. Mack signs one of Bertha's checks with his own name only. Which of the following parties is liable on the check?

Under Revised Article 3 of the Uniform Commercial Code rules for beneficiaries, in the event of a breach of transfer warranty, _____.

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

Under Revised Article 3 of the Uniform Commercial Code (UCC), presentment must be made by written communication.

Which of the following statements is true of contractual liability on negotiable instruments?

Maya stole a check from Orhan payable to the order of Orhan. Maya forged Orhan's signature and presented the check for payment at Winston Bank, which honored the check. If Orhan sues Winston Bank for the amount of the check, under what theory, can Orhan recover the funds from the bank?

If a drawee bank mistakenly paid a check over a stop-payment order, the bank cannot recover if it paid the check to a presenter who had taken the instrument in good faith and for value.