Asked by Nathan Vandervoort on Apr 24, 2024
Verified
Which of the following is true regarding liability on negotiable instruments?
A) Makers and acceptors are primarily liable for a negotiable instrument,while drawers and endorsers are secondarily liable
B) Drawers and endorsers are primarily liable for a negotiable instrument,while makers and acceptors are secondarily liable
C) Makers and drawers are primarily liable for a negotiable instrument,while acceptors and endorsers are secondarily liable
D) Acceptors and endorsers are primarily liable for a negotiable instrument,while makers and drawers are secondarily liable
E) Makers,acceptors,drawers,and endorsers are all secondarily liable for a negotiable instrument.
Primarily Liable
Refers to the party that bears the first or main responsibility for fulfilling an obligation or debt.
Secondarily Liable
Liable for paying the amount designated on an instrument if the primarily liable party defaults.
- Identify the distinctions between primary and secondary obligations in negotiable instruments.
Verified Answer
RP
Regina Puma-atMay 02, 2024
Final Answer :
A
Explanation :
The Uniform Commercial Code establishes that certain parties-makers and acceptors-are primarily liable for a negotiable instrument,while drawers and endorsers are only secondarily liable.
Learning Objectives
- Identify the distinctions between primary and secondary obligations in negotiable instruments.