Warranty liability applies to persons who:

A) transfer an instrument.
B) obtain payment or acceptance of an instrument.
C) have signed the instrument, but not on those who have not signed.
D) Both  transfer an instrument  and  obtain payment or acceptance of an instrument  are correct.

Warranty Liability

A legal obligation arising from warranty provisions that hold a seller or manufacturer responsible for defects or non-compliance of a product or service with the stated warranties or guarantees.

Transfer

The act of moving an asset, title, right, or interest from one entity or individual to another, which can occur through various means such as sales, gifts, or inheritance.

Acceptance

The act of agreeing to the terms of an offer, thereby creating a binding contract.