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:

Statistical Process Control

A method of quality control which uses statistical methods to monitor and control a process.

Small Samples

Investigations or analyses that involve a relatively small number of observations or data points, which may require special statistical techniques to infer conclusions.

Actual Dimensions

The measured size or extent of an object, as opposed to its designed or expected dimensions.

Process Control

The use of information technology to control a physical process.