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.

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Definitions:

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Predictive

Relating to the ability to foresee or anticipate future events or outcomes based on current data or trends.

Standardization

The process of developing and implementing technical standards to ensure consistency and compatibility between processes and products.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related measure.