Which of the Following Is True Regarding the Warranty or Warranties

question 25

Multiple Choice

Which of the following is true regarding the warranty or warranties applicable if an instrument is not an unaccepted draft presented to a drawee?

• A) Only one warranty applies, that the warrantor of the instrument is or was entitled to payment or authorized to obtain payment.
• B) Only one warranty applies, that the instrument has not been altered.
• C) Only one warranty applies, that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized.
• D) Two warranties are applicable: (1) that the instrument has not been altered, and (2) that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized.
• E) Three warranties are applicable: (1) that the instrument has not been altered, (2) that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized, and (3) that the warrantor of the instrument is or was entitled to payment or authorized to obtain payment.

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Definitions:

Less Artificial

A term that might refer to something being more natural or genuine, lacking artificial enhancements or modifications.

Inferential Statistic

A branch of statistics that allows for making predictions or inferences about a population based on a sample.

Tests Of Significance

Statistical tests used to determine whether the results of a study are likely to be due to chance or represent genuine effects.

Arithmetic Mean

The sum of a set of numbers divided by the count of numbers in the set, commonly known as the average.