Asked by Nomzamo Lubisi on Jun 16, 2024
Verified
Would the school be able to require that Jenna cover the amount of the check based on the law of negotiable instruments?
A) Yes, because she signed on the back with a blank unqualified endorsement.
B) Yes, because she signed on the back with a special qualified endorsement.
C) Yes, because she signed on the back regardless of the type of endorsement.
D) No, because she signed on the back using the words, "without recourse."
E) No, because the check was not properly delivered to Brad.
Without Recourse
A term indicating that the holder of a financial instrument cannot demand payment from the original issuer in case of default.
Endorse
To give support or public approval to someone or something, often used in the context of endorsing products, services, or candidates.
Negotiable Instruments
Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name written on the document.
- Pinpoint and detail the types of endorsements and their legal effects.
- Fathom the legal consequences that result from changes, typographical errors, and unwarranted signatures on negotiable documents.
Verified Answer
Learning Objectives
- Pinpoint and detail the types of endorsements and their legal effects.
- Fathom the legal consequences that result from changes, typographical errors, and unwarranted signatures on negotiable documents.
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