Which of the Following Is True

question 123

Multiple Choice

Which of the following is true?

• A) The maker of a note has primary liability upon signing a note, but the drawer of a check does not have primary liability upon signing the check.
• B) The maker of a note has primary liability upon signing the note, and the drawer of a check has primary liability upon signing the check.
• C) The maker of a note has primary liability upon signing the note, and the drawee of a check has primary liability upon the drawer's signing of the check.
• D) The drawer of check has primary liability upon signing the check, but the maker of a note does not have primary liability upon signing the note.
• E) The maker of a note does not have primary liability upon signing the note, nor does the drawer of a check upon signing the check.

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Definitions:

Modification

An alteration or change to an existing agreement or contract.

Surety Agreement

A legal contract where one party (the surety) guarantees the performance, obligations, or debts of another party (the principal) to a third party (the obligee).

Auto

Short for automobile, referring to any self-propelled vehicle used for transportation on public roads.

Credit

The provision of resources (such as money, goods, or services) by one party to another, with the expectation that the second party will repay the first party at a later date.