Which of the Following Is True Regarding Whether an Agent's

question 27

Multiple Choice

Which of the following is true regarding whether an agent's signature may satisfy the requirement of negotiability that the signature of a maker or drawer appear?

• A) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability.
• B) An agent's signature on behalf of his or her principal cannot bind the principal and does not satisfy the signature requirement for negotiability.
• C) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if specific authorization from the principal allowing the agent to act on the specific transaction at issue is attached to the document.
• D) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is for an amount over $1,000.
• E) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is in an amount of $1,000 or less.

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Definitions:

Aqueous Sodium Hydroxide

A solution of sodium hydroxide (NaOH) in water, commonly used as a strong base in chemical synthesis and reactions.

Tristearin

A triester derived from glycerol and stearic acid; it's a fat commonly found in animal and vegetable fats.

Aqueous Solution

A solution in which water is the solvent and can dissolve a variety of solutes, both ionic and molecular.

Immiscible Liquids

Liquids that do not mix together to form a homogeneous solution, often separating into distinct layers when combined.