Asked by Nabin Adhikari on May 22, 2024
Verified
Elder, an authorized agent for Mullins, signs a negotiable instrument, "Mullins, principal, by Elder, agent." Mullins has primary liability and Elder has secondary liability on the instrument.
Authorized Agent
An individual or entity that has been given the legal authority to act on behalf of another person or entity in business transactions or negotiations.
Primary Liability
The foremost responsibility to pay or perform under a legal obligation, without recourse to others for reimbursement.
Secondary Liability
Legal responsibility that arises from helping, enabling, or indirectly contributing to the infringement or wrongdoing by another.
- Familiarize oneself with the duties and accountabilities of entities involved in negotiable instruments according to the UCC.
- Identify the differences between primary and secondary liability regarding negotiable instruments.
Verified Answer
JM
Judith MartinezMay 23, 2024
Final Answer :
False
Explanation :
Elder, by signing as an agent and clearly indicating the principal (Mullins) in the signature, does not assume personal liability unless specifically agreed upon. Mullins, as the principal, bears the primary liability.
Learning Objectives
- Familiarize oneself with the duties and accountabilities of entities involved in negotiable instruments according to the UCC.
- Identify the differences between primary and secondary liability regarding negotiable instruments.