Indorsers Are Obligated to Make the Payment Only When The

question 8

Multiple Choice

Indorsers are obligated to make the payment only when the:

• A)instrument has not been properly presented to the drawee or party obliged to pay the instrument.
• B)instrument is not dishonored.
• C)notice of dishonor is not given to the secondary party within the time and manner mentioned.
• D)instrument has been properly presented to the drawee or party obliged to pay the instrument,and payment must be demanded.

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Definitions:

Consignor

The name for the manufacturer in a consigned inventory arrangement.

Consignment

An arrangement in which goods are left in the possession of another party to sell, but the consignor retains ownership until the goods are sold.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and necessary selling expenses.

Direct Costs of Disposal

The expenses directly linked to the process of disposing of an asset, including sales fees and legal costs.