When a Negotiable Instrument Is Used, the Drawer of the Instrument

question 58

True/False

When a negotiable instrument is used, the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

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Definitions:

Pension Plan

A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit, which the employee receives upon retiring.

Medical Insurance Protection

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Monitoring Conversations

The practice of listening to, recording, or observing conversations, often for compliance or security reasons.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Federal law that ensures that when employees lose their jobs orhave their hours reduced to a level at which they would notbe eligible to receive medical, dental, or optical benefits fromtheir employer, the employees will be able to continue receiving benefits under the employer’s policy for up to 18 months by paying the premiums for the policy.