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Art Signs a Promissory Note Payable to the Order of Swains

Question 56

Multiple Choice

Art signs a promissory note payable to the order of Swains Jewelers for $8,000 for a wedding ring.If the owner of Swains simply signs "Swains Jewelers":


A) the note is restrictively indorsed.
B) the indorsement is ineffective because the note will have to bear the signature of the person who indorsed it.
C) the note is negotiable by delivery.
D) the indorsement will be valid only if dated.

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