A Transferor Makes Certain Implied Warranties to the Transferee When

question 32

Multiple Choice

A transferor makes certain implied warranties to the transferee when a bill of lading is transferred. These warranties are:

• A) that the bill of lading is genuine, that its transfer is rightful, and that the transferor has no knowledge of any defects.
• B) not applicable if the instrument is nonnegotiable.
• C) not applicable to negotiable transfers.
• D) none of the above.

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Definitions:

Grow

To increase in size, amount, or value over a period of time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used as an indicator of inflation.

Annual Rate of Inflation

The percentage increase in the price level of goods and services in an economy over a year.

Decade

A period of ten years.