What Is Dishonor in Connection with a Negotiable Instrument

question 6

Multiple Choice

What is dishonor in connection with a negotiable instrument?

• A) an instrument being created in connection with a fraudulent transaction
• B) any potential transferee refusing to accept the instrument
• C) the refusal of the maker or drawer to pay the instrument when it is presented for payment
• D) the transfer of an order instrument without the proper indorsement

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Definitions:

Uniform Commercial Code

A comprehensive set of laws that govern commercial transactions in the United States to standardize and simplify the legal process.

Insolvent Seller

A seller who cannot meet their financial liabilities as they become due.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Uniform Commercial Code

A comprehensive set of laws that governs all commercial transactions in the United States.