Which of the Following Is True Under the UCC Regarding

Multiple Choice

Which of the following is true under the UCC regarding liability of a principal if the agent enters into a contract that is a negotiable instrument?

A) The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability.
B) The principal cannot be held liable unless the principal's name is on the instrument.
C) The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity.
D) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity.
E) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity, or the agent has been ruled insolvent.