Which of the Following Is True Regarding the Liability of an Accommodation

question 4

Multiple Choice

Which of the following is true regarding the liability of an accommodation party?

• A) As a maker, an accommodation party has primary liability; but as an endorser, the party has secondary liability.
• B) An accommodation party has primary liability both as a maker and as an endorser.
• C) An accommodation party has secondary liability both as a maker and as an endorser.
• D) An accommodation party has primary liability as either a maker or endorser only if all other parties to the instrument have filed bankruptcy.
• E) An accommodation party has primary liability as a maker only if all other parties have filed bankruptcy, and secondary liability in any other case regardless of whether the accommodation party is the maker or endorser.

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Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, problem-solving, and decision-making.

Mental Functions

The various operations of the mind, including perception, reasoning, thinking, and processing emotions.

Humanistic Psychologist

A psychologist specializing in humanistic psychology, which emphasizes individual potential and stresses the importance of growth and self-actualization.

Personal Growth

The process of improving oneself through activities that develop talents and potential, contribute to self-actualization, and enrich quality of life.