Which of the Following Statements Is TRUE with Respect to Notice

question 44

Multiple Choice

Which of the following statements is TRUE with respect to notice of dishonour?

• A) In some circumstances, an endorser may be held liable even if it did not actually receive notice of dishonour following the dishonour of a cheque.
• B) To be effective, notice of dishonour normally can be provided any time within six months of dishonour.
• C) Once notice of dishonour is given to one endorser, it is automatically effective against all prior endorsers.
• D) Notice of dishonour only needs to be provided against a party that did not endorse an instrument.
• E) Notice of dishonour is significant mainly because it relieves the drawee of a cheque of liability.

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Definitions:

Herbivores

Organisms that eat primarily plants or plant material.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Animals

Multicellular, eukaryotic organisms of the kingdom Animalia that are characterized by their ability to move, reproduce sexually, and consume organic material.

Major Lineage

A principal branch or group in the evolutionary tree that represents a large division of organisms sharing a common ancestor.