Read the Following Statements with Regard to the Parties Involved

question 137

Multiple Choice

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is false.

• A) The person who signs and issues the cheque is the drawer. The person who is owed the money and receives the cheque is the drawee.
• B) A person who signs a draft is a drawer; the party commanded to pay is the drawee.
• C) An acceptor of a draft will become liable to the payee for the amount of the draft.
• D) The payee of a negotiable instrument can negotiate the instrument to a holder who will be remote in relation to the drawer.
• E) The person who signs a promissory note is the maker of the note and, unlike a cheque, the note will not include a drawee.

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Definitions:

Corporate Codes

Policies or guidelines established by companies to dictate behavior, ethics, and responsibilities within the corporate environment.

Labor Abuse Scandals

Incidents or revelations of poor working conditions, exploitation, or violations of workers’ rights within companies or industries.

Bad Publicity

Negative attention or coverage in the media, which can harm an entity's reputation or image.

Cross-Border Flow

The movement of goods, services, capital, or people across international borders.