All of the Following Except Which One Are Warranted by the Transferor

question 59

Multiple Choice

All of the following except which one are warranted by the transferor of a negotiable instrument?

• A) The instrument is not subject to a defense.
• B) The transferor has no knowledge of a material alteration.
• C) All signatures are authentic and authorized.
• D) Transferor has no knowledge of insolvency proceedings instituted with respect to the maker or drawer.

---

Definitions:

Unidirectional

Moving in only one direction.

Bidirectional

An object that moves in two directions.

Like Charges

Charges that are the same, either both positive or both negative, which repel each other according to Coulomb's law.

Attraction

The force that draws two objects toward each other, such as the electromagnetic force between oppositely charged particles or between magnetic poles.